Hang Seng Jumps 2.5% to End at Near 2-Week High

The Hang Seng surged 669 points, or 2.5%, to close at 27,082 on Monday, swinging from weakness in the prior session amid robust gains across sectors. Sentiment improved as traders anticipated lower levies for China after the U.S. Supreme Court struck down Trump’s sweeping tariff measures. The benchmark index hovered near a two-week high, further boosted by news that Hong Kong will spend HKD 4 billion to buy out owners of homes destroyed in November’s high-rise fire. Meanwhile, mainland markets will reopen Tuesday after the week-long Lunar New Year break, with early holiday data signaling “broadly firm” demand, according to Citi analysts. Tech stocks led the rally, with the sector index jumping over 3% from Friday’s seven-month low, buoyed by optimism over China’s AI sector. SMIC climbed 4.6%, while Alibaba Hong Kong gained 3.6% and Tencent rose 3.5%. Gold-linked shares also surged alongside bullion, including Zijin Gold Intl. (7.2%), Zhojin Mining (5.6%), and Laopu Gold (2.8%).

Hong Kong equities soared 648 points, or 2.4%, to 27,056 in the Monday morning session, rebounding from the prior day’s weakness amid widespread sector gains. Sentiment strengthened as mainland markets are set to reopen Tuesday after a week-long break. Meanwhile, a Financial Times report said Trump’s new 15% global tariff could benefit countries he has heavily criticized, including China and Brazil. Separately, U.S. Trade Representative Greer noted the measures would not affect Trump’s planned meeting with Chinese leader Xi Jinping. However, a plunge in U.S. futures capped gains after Wall Street ended higher Friday, led by consumer stocks. Locally, Hong Kong’s jobless rate rose to 3.9% in the three months to January, the highest since September 2022. Caution also grew ahead of key data this week, including Hong Kong's Q4 final GDP, January inflation, and trade data. Early gainers included Meituan (3.5%), Zijin Gold Intl. (3.4%), SMIC (2.9%), Tencent (2.2%), and Xiaomi Corp. (1.8%).

The Hang Seng slid 292 points, or 1.1%, to close at 26,413 on Friday, retreating from the prior session’s strength as tech and consumer stocks slumped. Risk sentiment weakened after Wall Street Thursday was pressured by renewed concerns over private credit and escalating U.S.–Iran tensions, with President Trump saying he will decide within 10 days whether to strike Iran. The tech index dropped nearly 3% as traders positioned ahead of Nvidia’s earnings next week. Simultaneously, consumer shares fell sharply despite signs of strong travel demand during China’s Spring Festival. Still, property stocks edged higher on hopes that Beijing will roll out post-holiday support measures, ahead of a top legislature meeting in early March. Meanwhile, mainland markets will reopen on Tuesday. Major laggards included Xiaomi Corp. (-3.5%), SMIC (-2.7%), Techtronic Industries (-2.5%), and Tencent (-2.0%). For the week, the Hang Seng lost 0.6%, after a muted performance in the previous period.