Shares of China-based internet companies moved higher Thursday, as reports of a resumption in trade talks helped provide investors some relief from the recent stewing over macroeconomic and geopolitical concerns.
The iShares China Large-Cap exchange-traded fund
surged 1.1% in afternoon trade, after closing Wednesday at a 13-month low. The FXI ETF, which tracks the stocks of the 50 largest market-capitalization China-based companies listed in Hong Kong, had tumbled 6.2% over the previous four sessions.
The Invesco Golden Dragon China ETF
which tracks U.S.-listed China-based companies that derive most of their revenue in China, hiked up 1.7%, after falling 17% over the past month.
The Chinese renminbi rallied 0.8% against the U.S. dollar, after slumping 3.7% over the past month, and 8.9% over the past three months, to close Wednesday at a 20-month low.
The bounce comes after multiple reports that China said it will send a delegation to the U.S. later this month, in response to an invitation from the U.S., to discuss economic and trade issues, which have led to billions of dollars in tariffs imposed by each country on the others’ goods.
China’s markets had been falling because of worries over how far the countries will go to try to win a trade war, but also because of worries over a weakening economy and the risk that the currency crisis in Turkey will spread to other emerging markets.
Don’t miss: Here’s why stock-market investors are so worried about the U.S.-China trade skirmish.
Related: Opinion: The biggest contagion risk to U.S. stocks isn’t Turkey—it’s an already deteriorating China.
E-commerce company JD.com Inc. shares
bucked the trend, as they fell 2.3% after the company reported second-quarter adjusted earnings and revenue that missed expectations. The stock had tumbled 10% the previous four sessions to close Wednesday at a 16-month low.
Among others faring better on Thursday, Tencent Holdings Ltd.’s stock
advanced 3.2%. It had slumped 3.6% to an 11-month low on Wednesday, after the internet giant reported second-quarter earnings and revenue that fell below expectations.
Also read: Tencent’s dive erases $175 billion from market cap.
Elsewhere, the U.S.-listed shares of Alibaba Group Holding Ltd.
ran up 1.5%, Baidu Inc.
rose 1.9%, Vipshop Holdings Ltd.
rallied 0.9%, Huya Inc.
rang up a 3.2% gain, Bilibili Inc.
tacked on 3.5% and iQIYI Inc.
John Lynch, chief investment strategist at LPL Research, said despite the Turkey situation, emerging markets, which includes China, have many solid fundamentals including economic growth, favorable demographics and attractive valuations.
“We look for an eventual compromise on trade, suggesting the potential for a pivot in EM performance,” Lynch wrote in a note to clients.
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