The Hang Seng Index was up 1.1% in early trading on Tuesday morning, as Asia-Pacific markets mostly remained buoyant.
The surge in large-cap big tech stocks, including Alibaba Group Holding Ltd. BABA, Tencent Holdings Ltd TCEHY, JD.com Inc. JD and Baidu Inc. BIDU contributed to the momentum.
U.S.-listed Chinese electric vehicle stocks also rose significantly on the back of upbeat June deliveries.
Nio delivered a record 12,961 vehicles in June, up 60% year-over-year. Xpeng delivered 15,295 vehicles last month, 133% higher than the same month a year ago. Li Auto delivered 13,024 Li ONEs — the only Li model currently on sale — in June, representing a yearly rise of 63%.
Other APAC Markets: China’s SSE Composite Index traded 0.2% higher, while the Shenzhen Component traded 0.2% lower.
Japan’s Nikkei 225 traded 0.86% higher, South Korea’s KOSPI was up 1.67% at the time of writing and Australia’s S&P/ASX 200 traded 0.3% higher.
US Futures: S&P 500 futures traded 0.5% higher late Monday (New York time). Dow Jones futures were up 0.4% and Nasdaq 100 futures rose 0.7%.
Macro Factors: While U.S. markets remained closed for the July 4 holiday overnight, Asia-Pacific markets showed momentum as a recovery in oil prices trumped concerns related to the recession.
U.S. crude futures traded 2.14% higher at $110.73 per barrel at press time, while Brent crude futures traded 0.5% higher at $114.04 per barrel.
The surge in oil prices came as the Organization of the Petroleum Exporting Countries (OPEC) showed lower output in the latest data and unrest in Libya piled on concerns related to sanctions on Russia.
Markets also likely took some support from expectations of U.S. President Joe Biden rolling back some tariffs on Chinese imports as soon as this week, according to the Wall Street Journal.
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