The Hang Seng Index rose by 95 points, or 0.4%, to close at 23,579 on Thursday, marking its second consecutive day of gains. Investor sentiment was bolstered after U.S. President Trump hinted at the possibility of reducing tariffs on China, a move that could potentially facilitate the sale of TikTok by its parent company, ByteDance.
Hang Seng pares gains at finish
This development helped ease some of the tensions surrounding U.S.-China trade relations, boosting market optimism. Additionally, a modest 0.3% year-on-year decline in Chinese industrial profits for the first two months of 2025 provided further support. This was a marked improvement from the 3.3% drop in industrial profits seen in 2024, signaling a potential stabilization in the Chinese economy.
The positive momentum was reinforced by a bullish outlook from JPMorgan, which joined other major Wall Street banks in becoming more optimistic about China’s economic prospects. JPMorgan raised its Q4 2025 target for the MSCI China Index to 95, roughly 7% higher than its previous forecast, signaling increased confidence in the market. As a result, most sectors within the Hang Seng advanced, with notable gains in technology and automotive stocks, which rallied despite ongoing concerns over potential U.S. tariffs on Chinese cars.
U.S. futures edge higher
Meanwhile, U.S. futures edged higher following Wednesday’s losses on Wall Street, adding to the optimism across global markets. However, the gains were trimmed in the afternoon as investors remained cautious ahead of China’s PMI data for March, set to be released next week. Pharma stocks, however, were strong performers, with Innovent Biologics surging by an impressive 18.4%, while Wuxi Biologics (6.1%) and Hansoh Pharmaceutical (6.0%) also posted solid gains. This rally in the pharmaceutical sector added to the overall positive tone in the market, as investors looked to sectors that have been showing resilience in the face of global uncertainties.
