China, Hong Kong stocks join global relief rally on hop

China and Hong Kong stocks joined a global relief rally on Wednesday and the yuan firmed against the dollar after U.S. President Donald Trump signalled that an end to the Iran war could be in sight.



Trump said the U.S. could end its military attacks on Iran within two to three weeks and Tehran does not have to make a deal as a prerequisite for the conflict to wind down.



"The Iran war will wrap up quickly," said Zeng Wenkai, chief investment officer at Hong Kong-based Shengqi Asset Management.



"The U.S. and Iran won't need to strike a deal. U.S. troops will pull out, Iran won't really have a choice and won't block the strait and global stocks will jump."

However, he expected China stocks to rise less forcefully than other markets, which have been hurt more severely by the oil shock.



China's blue-chip CSI300 Index rebounded 1.7% in its best day in almost three months. The Shanghai Composite Index gained 1.5%.



In Hong Kong, the Hang Seng rebounded 2%, as Asian markets rallied more than 4% following an overnight jump on Wall Street.