Hong Kong Stocks Surge on Trade-Talk Optimism and US Tech Gains
Microsoft, HSBC Holding, and Alibaba Group Holding Propel Hong Kong Markets
Hong Kong stocks surged on Friday, driven by optimism surrounding potential trade talks between China and the US, and gains in the US tech sector thanks to robust earnings reports. The Hang Seng Index showed a notable increase of 1.3% to reach 22,409.12, striving for a third consecutive week of gains.
Key Performers
- Xiaomi rose 4.2% after reporting a year-on-year increase in EV deliveries accompanied by a price target upgrade from Deutsche Bank.
- Alibaba Group Holding gained 3.3% with the launch of its enhanced AI models.
- Hong Kong Exchanges and Clearing saw a 2.7% uptick, while Zijin Minding increased by 3.5%.
- HSBC Holding dipped 1.3% following Chairman Mark Tucker's retirement announcement.
- Sinopharm Group and WH Group experienced slight declines.
Trade Talk Developments
In a statement, China's Commerce Ministry expressed it was evaluating the feasibility of trade discussions with the US, urging US officials for sincerity amidst ongoing trade tensions.
Investor Sentiment and Market Outlook
Investor confidence buoyed as major tech firms like Meta and Microsoft reported bullish outlooks, significantly influencing market dynamics. Although the Dow Jones Industrial Average rose by 0.2%, the S&P 500 climbed 0.6%, reinforcing the tech sector's influence across markets. Overall, the Asian markets also showed positive trends with Japan’s Nikkei 225 and Australia’s S&P/ASX 200 showcasing gains.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.