The Hang Seng Index climbed 253 points, or 1.1%, to close at 23,907 on Thursday, marking its third consecutive daily gain and reaching a two-week high.
Hang Seng surges by 1.1% at finish
The rally was underpinned by broad-based gains across sectors, as improving investor sentiment was buoyed by a rebound in China’s services activity for May, which recovered from April’s seven-month low. The data offered a glimmer of hope that domestic demand may be stabilizing, providing some relief to markets rattled by recent signs of economic slowdown.
Technology stocks led the charge, with the Hang Seng Tech Index rising nearly 2.0%, lifted by a strong overnight performance in Chinese ADRs listed in New York. Investors appeared encouraged by the resilience of major tech names, which helped ease fears about regulatory overhang and global demand uncertainty. Other key sectors, including property, consumer discretionary, and financials, also logged solid gains, supported by renewed optimism around the possibility of resumed U.S.-China trade negotiations. This came despite President Trump’s comments that it would be “extremely hard” to reach a comprehensive deal with Chinese President Xi Jinping—remarks that markets appeared to discount in light of broader risk-on sentiment.
U.S. equity futures edged higher
Meanwhile, U.S. equity futures edged higher after Trump intensified pressure on the Federal Reserve, calling for interest rate cuts and openly criticizing Fed Chair Jerome Powell. This followed the release of weaker-than-expected ADP private payrolls data, which raised speculation that the Fed might take a more dovish stance to support growth.
On the corporate front, BOC Aviation Ltd. advanced 1.5% after announcing an agreement to purchase nine Airbus A320neo aircraft, to be leased to Colombian airline Avianca, highlighting continued confidence in aviation sector recovery. Luxury retailer Prada SpA added 0.7% after disclosing the acquisition of a 10% stake in an Italian leather goods manufacturer, a move seen as bolstering its supply chain and craftsmanship capabilities. Among the top gainers on the day were Kuaishou Technology, which surged 4.7%, Semiconductor Manufacturing International Corporation (SMIC), up 3.8%, and Meituan, which rose 2.6%, reflecting renewed investor appetite for growth-oriented Chinese equities amid improving sentiment.
