Alibaba, Tencent and other Chinese stocks rose sharply

CHNComp rose more than 4.0% on Tuesday, closing at its highest level in nearly two months, as warming U.S.-China relations following the Xi-Biden meeting overshadowed disappointing monthly activity data from the world’s second-largest economy. Leaders from both countries called at the G20 summit in Indonesia to reduce tensions between the two nations. Also, Chinese stocks rose despite a series of disappointing domestic economic data highlighted by industrial production and retail sales figures that beat expectations in October. 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 closest resistance to be seen can be found at 6790 pts, which is marked by previous price reactions and the upper limit of the descending channel. On the other hand, if the sellers manage to regain control, the first line of support is located at 5900 pts. Source: xStation5

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

Shares in Taiwan Semiconductor Manufacturing (TSM.US) rose nearly 8.0% following news that Warren Buffett added about $5 billion to his investments in the third quarter.

Alibaba stock (BABA.US) broke above major resistance at $74.20 pre-market, coinciding with the downtrend and 23.6% Fibonacci retracement of the last downtrend. If the current sentiment prevails, the upside may accelerate towards the next resistance at $84.30. Source: xStation5

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