Alibaba, Tencent and other Chinese stocks are rising sharply

CHNComp rose more than 4.0% to a nearly two-month high on Tuesday as warming U.S.-China relations following the Xi-Biden meeting overshadowed disappointing monthly activity data from the world’s second-largest economy. At the G20 summit held in Indonesia, the leaders of both countries called for the reduction of tension between the two countries. Moreover, Chinese stocks rose despite a string of disappointing domestic economic data in October, highlighted by better-than-expected industrial production and retail sales figures. In addition, investors still expect Beijing to increase stimulus and ease COVID restrictions to support the struggling economy.

CHNComp rose sharply on Tuesday, hitting its highest level since late September. If the current sentiment prevails, the nearest resistance to watch can be found at 6790 pts, marked by previous price reactions and the upper border of the descending channel. On the other hand, if the sellers can regain control, the first support line is located at 5900 pts. Source: xStation5

That bullish sentiment has boosted US-listed Chinese stocks, which are trading sharply higher ahead of the open. Alibaba shares (BABA.US) and Tencent (TME.US) rose more than 10% before the opening bell, while shares of Bilibili ( BILI.US ) rose more than 14%.

Shares of Taiwan Semiconductor Manufacturing (TSM.USIt rose 8.0% after news that Warren Buffett added nearly $5 billion to his investments in the third quarter.

Alibaba shares (BABA.US) broke above key resistance in the market earlier at $74.20, coinciding with the lower trendline and 23.6% Fibonacci retracement of the last bearish wave. If the current sentiment prevails, the upside could accelerate towards the next resistance at $84.30. Source: xStation5

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