Hang Seng reverses early losses to finish higher

The Hang Seng Index climbed 159 points, or 0.7%, to close at 23,689 on Monday, reversing early-session losses and marking its second consecutive daily gain.

The rebound was broad-based, with all major sectors ending in positive territory, led by strong performances in property, technology, and financial shares. Investor sentiment was buoyed by a sharp uptick in mainland Chinese markets, driven by rising expectations that Beijing may unveil new stimulus measures during the upcoming session of China’s top legislative body later this week. Optimism surrounding potential policy support helped counterbalance initial caution sparked by weaker cues from Wall Street.

U.S. markets struggled at the open amid mixed signals from Federal Reserve officials on the trajectory of interest rates. San Francisco Fed President Mary Daly indicated that rate cuts could begin in the fall, a slightly more dovish stance compared to Fed Governor Christopher Waller, who has pointed to a possible move as early as July. Despite the uncertainty, Asian markets remained relatively resilient.

Meanwhile, geopolitical tensions lingered after the U.S. launched airstrikes on Iranian nuclear facilities over the weekend, prompting Tehran to threaten retaliation. The U.S. State Department subsequently issued a global caution advisory, highlighting the risk of further escalations. However, the ongoing conflict appeared to have limited direct impact on Hong Kong equities for now, as traders focused more on domestic and regional catalysts.

Among individual gainers, CSPC Pharmaceutical Group rose 1.3% after receiving regulatory approval for a new pain treatment, adding to investor confidence in the company’s drug pipeline. Other notable risers included Laopu Old, which surged 7.8% on strong trading volumes, chipmaker SMIC, up 4.8% amid renewed interest in semiconductor stocks, and Akeso Inc., which also climbed 4.8%, likely reflecting continued investor enthusiasm for innovative biotech firms.