Hong Kong Stocks Extend Rally

The Hang Seng Index surged 160 points, or 0.6%, to 26,550 on Thursday, extending gains from the previous session as optimism over easing US-China tensions lifted sentiment across Hong Kong equities. Markets rose as investors priced in reduced geopolitical risk and potential stabilisation of US-China relations ahead of the Trump-Xi summit in Beijing. The advance also tracked broader regional strength, with technology-related stocks acting as the main driver of the rally. Tencent Holdings led gains, up 2.6%. Among other notable movers were Meituan Class (3.9%), InnoScience Technology (3.4%), Kuaishou Technology (4.8%), Xiaomi Corporation (2.2%), and Semiconductor Manufacturing International Corporation (1.6%). However, markets remain sensitive to developments in US economic data, Federal Reserve interest rate expectations, and any updates on US-China diplomatic talks, which could quickly shift momentum in either direction.

The Hang Seng Index rose 41 points, or 0.2%, to close at 26,388 on Wednesday, as gains in technology services shares helped support the market despite lingering concerns over rising geopolitical tensions and persistent inflation pressures. Sentiment remained cautious as investors monitored the anticipated Trump-Xi meeting and developments in the Middle East after President Donald Trump adopted a tougher stance toward Iran following criticism of ceasefire efforts. In Hong Kong, shares of MINISO Group rose 4.6% after the company issued a strong Q1 outlook, forecasting revenue growth of 28%-29% and a sharp increase in profits. Among notable movers included Tencent Holdings (1.4%), Meituan Class (4.5%), and Xiaomi Corporation (1.2%). In contrast, Pop Mart fell 1.7% after warning that rising raw material and fuel costs could pressure 2026 profit margins, despite continued strength in overseas demand for its collectibles.

The Hang Seng Index was little changed on Wednesday, as investors balanced concerns over rising U.S. inflation and escalating Middle East tensions against optimism surrounding the anticipated Trump-Xi meeting. Sentiment remained cautious after President Donald Trump signaled a tougher stance toward Iran following criticism of the ceasefire, while persistent geopolitical risks kept pressure on global markets. Oil prices held firm after sharp gains as the prolonged conflict in the Middle East continued to disrupt shipping flows through the Strait of Hormuz, fueling worries over renewed inflationary pressures. Chinese technology shares were also in focus with investors increasingly demanding clearer returns from heavy AI spending by firms such as Alibaba Group and Tencent ahead of the earnings season. Notable laggards included Tencent Holdings (-0.4%), SMIC (-3.0%), and Techtronic Industries (-2.9%), while AIA Group and Pop Mart advanced 1.2% and 2.0%, respectively.