Hang Seng index closes up 2.30% at 18,963 points (Il Sole 24 Ore Radiocor) - Hong Kong , 10 May - Hong Kong shares closed sharply higher, extending yesterday's rebound and leading the gains amid strong Asian markets.

The city's stocks outperformed their mainland peers as they shrugged off concerns over upcoming US trade tariffs and were boosted by reports that China was considering exempting mainland investors from taxes on dividends from Hong Kong stocks bought via Stock Connect.

The potential move comes as yet another effort to help prop up the local equity markets after sharp losses over the past three years.

Renewed hopes for rate cuts by the US Federal Reserve helped lift investor sentiment after fresh weekly jobless claims data released yesterday came in at the highest level since August.

In Hong Kong stock market dealings electric vehicle makers dipped following reports that Washington was preparing more tariffs against Chinese companies, specifically aimed at electric vehicle makers and other key sectors.

Li Auto sak 1.59%, NIO dipped 1.43% and BYD sank 1.06%.

Technology stocks were slightly higher, with the Hang Seng Tech index up 0.38%.

The Hang Seng index closed up 2.30% at 18,963 points, hovering near its highest level in nine months after posting earlier this week its longest winning streak since January 2018.

The benchmark index posted a 7.5% gain in April, its strongest monthly performance since January 2023, making it the world's best-performing index last month as expectations of more policy support from Beijing and renewed optimism over China's economic recovery recently boosted investor sentiment.

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(RADIOCOR) 10-05-24 11:51:59 (0299) 5 NNNN