Hong Kong stocks rally on fiscal support, tech leads gains
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Hong Kong equities extended their winning streak on Monday, led by technology firms as investors positioned for China’s anticipated fiscal support to counteract new U.S. tariffs.
Market performance
Hang Seng index rose 1.84%, adding 388.44 points to close at 21,521.98; Hang Seng China enterprises index climbed 2.09%, up 162.74 points to 7,946.81.
Tech firms drive market momentum
The rally was fueled by chinese technology giants, benefiting from global optimism surrounding Deepseek’s ai developments: Xiaomi rose 3%; Tencent gained 2%; Alibaba group advanced 3.12%; Meituan surged 5.58%.
Investors anticipate stimulus despite tariff concerns
U.S. President Donald Trump announced a 25% tariff on steel and aluminum imports, sparking fears of a trade war escalation however, investor sentiment remained resilient, with bets on government intervention to support economic stability.
China’s inflation data provides a boost
Consumer price index (CPI) for January increased 0.5% year-over-year, the fastest pace in five months, exceeding the 0.4% forecast from reuters economists; producer price index (PPI) remained weak, falling 2.3% year-over-year, highlighting continued manufacturing challenges. The positive CPI figures overshadowed concerns over the PPI decline, reinforcing expectations of fiscal and monetary easing from policymakers to stimulate domestic demand.
Market performance
Hang Seng index rose 1.84%, adding 388.44 points to close at 21,521.98; Hang Seng China enterprises index climbed 2.09%, up 162.74 points to 7,946.81.
Tech firms drive market momentum
The rally was fueled by chinese technology giants, benefiting from global optimism surrounding Deepseek’s ai developments: Xiaomi rose 3%; Tencent gained 2%; Alibaba group advanced 3.12%; Meituan surged 5.58%.
Investors anticipate stimulus despite tariff concerns
U.S. President Donald Trump announced a 25% tariff on steel and aluminum imports, sparking fears of a trade war escalation however, investor sentiment remained resilient, with bets on government intervention to support economic stability.
China’s inflation data provides a boost
Consumer price index (CPI) for January increased 0.5% year-over-year, the fastest pace in five months, exceeding the 0.4% forecast from reuters economists; producer price index (PPI) remained weak, falling 2.3% year-over-year, highlighting continued manufacturing challenges. The positive CPI figures overshadowed concerns over the PPI decline, reinforcing expectations of fiscal and monetary easing from policymakers to stimulate domestic demand.