The Hang Seng climbed 139 points, or 0.6%, to close at 23,483 on Wednesday, partially rebounding from a near two-week low in the prior session. Investor sentiment improved after the Trump administration suggested that upcoming U.S. tariffs may be more targeted than initially feared, easing concerns about a potential escalation in trade tensions.
Hang Seng closes by 0.6% higher
Traders also responded positively to news that Morgan Stanley raised its 2025 year-end targets for Chinese stocks, bolstering optimism about the potential for long-term growth in the Chinese equity market. Additionally, Goldman Sachs strategists predicted further upside, driven by positive earnings revisions and an improving outlook for corporate profitability.
Geopolitical developments added to the positive momentum, with the U.S. announcing a ceasefire agreement between Russia and Ukraine in the Black Sea, which helped reduce fears of further escalation in the ongoing conflict. However, the rally was somewhat tempered by a slight drop in U.S. futures, as caution prevailed ahead of key U.S. Personal Consumption Expenditures (PCE) inflation data later in the week, which could influence the Federal Reserve's future policy decisions.
Most sectors rose
Most sectors rose, with technology, consumer stocks, and property leading the charge. WH Group surged 4.7% on the back of strong profit growth and the announcement of a special dividend, signaling confidence in the company’s financial health. Alibaba gained 1.4% after revealing a strategic partnership with BMW AG to advance artificial intelligence (AI) technology for cars in China, marking a significant move into the evolving tech-driven automotive sector.
Other notable gainers included Shenzhou International, which soared 12.4% on the back of strong earnings, Haidilao International, up 6.1% due to positive market sentiment surrounding its recovery post-pandemic, and Akeso Inc., which rose 4.0% following promising news related to its biotech pipeline.
Investor sentiment remains positive in Hong Kong
Despite some global uncertainties, investor sentiment remains generally positive in Hong Kong, with a strong focus on corporate earnings, targeted U.S. tariff policies, and strategic investments in emerging technologies. Market participants are closely watching for further signs of economic stabilization in both the U.S. and China, as well as developments in global geopolitical risks.
