Hang Seng Snaps Losing Streak on Strong China Data

The Hang Seng Index jumped 368 points, or 1.45%, to end at 25,834 on Monday, halting losses in the prior three sessions amid widespread gains across sectors. Sentiment strengthened after China’s activity data for the combined January–February 2026 beat forecasts, with industrial output, retail sales, and fixed investment all surprising to the upside. U.S. stock futures also traded notably higher ahead of the Fed’s policy meeting later this week. However, a third consecutive decline in mainland equities capped gains, amid speculation that a planned Trump–Xi Jinping meeting could be delayed as Washington pressed Beijing to help reopen the Strait of Hormuz. Separately, China’s statistics bureau cautioned that external pressures, geopolitical risks, and domestic structural challenges remain elevated. Among standout movers were Knowledge Atlas (14.0%), Mixue Group (6.4%), Akeso Inc. (6.0%), Xiaomi Corp. (5.3%), Orient Overseas (4.2%), and Meituan (3.0%).

Hong Kong stocks rose 62 points, or 0.3%, to 25,529 in early Monday trading, snapping a three-session losing streak as gains spread across most sectors. Sentiment improved alongside firmer U.S. stock futures, while reports that senior U.S. and Chinese officials met in Paris to discuss potential agreements on agriculture, critical minerals, and broader trade issues added optimism ahead of President Trump’s expected visit to Beijing later this month. Investors also welcomed Chinese activity data showing industrial output and retail sales both beating forecasts in the first two months of 2026. However, February's jobless rate climbed to a six-month high of 5.3%, pointing to lingering labor-market weakness. Gains were further capped by ongoing Middle East hostilities that have kept oil prices elevated and complicated the global inflation outlook. Notable movers included Knowledge Atlas (9.8%), Pop Mart Intl. (4.6%), Meituan (3.5%), Xiaomi Corp. (2.3%), and China Resources Land (2.0%).

The Hang Seng retreated 251 points, or 1.0%, to close at 25,466 on Friday, extending losses for a third straight session as selling pressure spread across sectors. The index also logged its third consecutive weekly decline, down 1.1%. Sentiment was dampened by a notable drop in U.S. stock futures as the Middle East conflict neared the two-week mark with no resolution in sight. Tensions escalated after Tehran threatened disruption in the Strait of Hormuz, keeping crude prices elevated and fueling inflation concerns. Mainland equities also weakened as traders awaited China’s February credit lending data and key activity indicators, including retail sales, for signals on domestic momentum. Still, losses were capped by reports that U.S. Treasury Secretary Bessent will meet He Lifeng in France on March 15–16, ahead of a planned Trump–Xi summit in Beijing in late March. Major decliners included Zijin Gold Intl. (-8.0%), Minimax Group (-6.6%), Knowledge Atlas (-4.1%), and AIA Group (-3.1%).