Hong Kong Stocks Rally on Tech Gains

The Hang Seng Index surged 640 points, or 2.5%, to close at 26,038 on Tuesday, extending its rally from the previous session as technology stocks led broad-based gains. Market sentiment was boosted by continued optimism surrounding artificial intelligence-related investments, following fresh record highs on Wall Street overnight driven by major US technology shares. Technology counters spearheaded the advance, with Tencent Holdings and Meituan jumping 10.9% and 9.1%, respectively. Financial and retail trade stocks also supported the rally, reflecting improved confidence in economic prospects and consumer demand. Other notable gainers included Semiconductor Manufacturing International (2.8%), Lenovo (5.9%), Xiaomi (2.9%), and Kuiashou Technology (5.5%). Meanwhile, traders continued to monitor developments in global trade negotiations and geopolitical tensions in the Middle East for further clues on the market outlook.

The Hang Seng Index edged higher by 230 points, or 0.9%, to 25,625 on Tuesday, extending gains from the previous session as technology stocks advanced amid continued optimism over artificial intelligence-related investments. The rise followed fresh record highs on Wall Street overnight, driven by strength in major technology shares. Investor sentiment remained cautious, however, as traders weighed renewed uncertainty surrounding US-Iran peace negotiations and their potential impact on global risk appetite. Meanwhile, traders monitored developments in Hong Kong's property sector after reports indicated that tighter mainland Chinese restrictions on overseas capital transfers could curb demand from wealthy Chinese buyers, potentially slowing a recent surge in local real estate purchases. Notable gainers included Tencent (+0.5%), Lenovo (+3.5%), Meituan (+4.4%), Semiconductor Manufacturing International (+1.6%), and Meitu (+2.4%).

The Hang Seng Index rose 216 points, or 0.9%, to close at 25,398 on Monday, kicking off the new month on a positive note as gains in technology finance, and retail trade stocks lifted the market. Sentiment was supported by continued optimism surrounding artificial intelligence-related investments and renewed buying at the beginning of the month. Chinese EV stocks were also in demand after strong May delivery data, with Xpeng soaring 8.2% to a six-week high after reporting deliveries of 32,158 vehicles, Nio jumping 6.3% after posting a 62.3% year-on-year increase in deliveries, and Xiaomi rising 2.1%. Investors continued to monitor developments in the Middle East after oil prices advanced and the US dollar strengthened amid limited progress toward a permanent US-Iran ceasefire. Although elevated geopolitical tensions kept energy markets in focus, Hong Kong equities remained supported by steady risk appetite. Among other movers were Tencent (2.1%), Lenovo (5.2%), and Pop Mart (3.6%).