Chinese Education Stocks Soar, Oil Price Rises
Shares in Hong Kong stocks rose on Tuesday, despite Fitch downgrading the long term currency issuer rating of Hong Kong from "AA" to "AA-" on April 21.
Hong Kong recorded no new locally transmitted coronavirus infections during the one full quarantine period, which marked the city's success in restraining the pandemic reportedly.
The U.S. stock also climbed on Tuesday as the market participants are eying the partial easing of restrictions on economic activity in the country amid the Covid-19 pandemic.
Chinese education sector enjoyed a boost Tuesday, after cities in China like Beijing and Shanghai reopened schools last week.
TAL Education Group (NYSE: TAL) gained 5% to $52.09 per share. The Beijing-based company provides K-12 after-school tutoring services in China. The company, one of China's largest education providers, also announced an 18% year-over-year revenue growth and a net loss of $98.5 million in the fourth quarter on April 28.
The stock price of China Online Education Group (NYSE: COE) jumped 6% to $26.17 per share. The company owns online and mobile education platforms named 51talk that enable students to take live interactive English lessons with international foreign teachers, focusing on spoken English.
New Oriental Education & Technology Group Inc. (NYSE: EDU) increased by 4% to $123.25 per share. The Beijing-based education giant provides private educational services in China.
Beijing-based K-12 education provider Puxin Ltd. (NYSE: NEW) gained 5% to $5.29 per share on Tuesday.
Other gainers vary by sector:
9F Inc. (Nasdaq: JFU) jumped over 12% to $6.14 per share. The Beijing-based company operates an online consumer finance platform.
21Vianet Group, Inc. (Nasdaq: VNET) gained 7% to $15.20 per share. The company provides carrier and cloud-neutral Internet data center services to Internet companies, government entities, and other enterprises.
Another technology gainer GDS Holdings Ltd. (Nasdaq: GDS) up 6% to $58.60 per share. The Shanghai-based company develops and operates data centers in China.
Huazhu Group Ltd. (Nasdaq: HTHT) gained 5% after the May Day holiday. The five-day May Day holiday saw over 100 million Chinese travelers as nationwide lockdown measures eased.
Shares in online retailer Pinduoduo Inc. (Nasdaq: PDD) added $2, trading at $48.72 per share.
China Merchants Bank (HKEX:03968) jumped 6% in Hong Kong.
Acorn International, Inc. (NYSE: ATV) lost 11% on Tuesday. The Shanghai-based marketing company develops, promotes, and sells products in China through online and offline methods.
Not all education stocks are gainers. LAIX Inc. (NYSE: LAIX) tanked nearly 10% on Tuesday to $3.08 per share.
Uxin Ltd. (Nasdaq: UXIN) dropped over 6%. The Beijing-based company operates a used car e-commerce platform in China.
In the U.S., the Dow Jones Industrial Average up about 133 points or 0.56%. The S&P 500 gained 0.9%, while the Nasdaq Composite rose 1.13%.
The Hang Seng Index in Hong Kong closed at 23,869, down 1.08%. Benchmarks in mainland China haven't updated due to the May Day holiday break.
The fear index VIX dropped nearly 7% to 33.61.
Oil prices continued to rebound on Tuesday. Crude oil WTI for the front-month jumped nearly 20% to $24.40 as of Tuesday afternoon.