Hong Kong Stocks Extend Gains for Second Day

The Hang Seng Index climbed 1.7%, or 383 points, to 23,445 on Friday, extending gains for a second straight session as technology, financial, and consumer stocks led broad-based gains. The market outperformed several Asian peers despite renewed weakness in technology and artificial intelligence-related shares, as investors elsewhere continued to rotate out of the sector on concerns that the AI-driven rally had become overextended. In Hong Kong, investors continued to favor internet companies amid attractive valuations, while improved global risk sentiment following the latest U.S. jobs data eased concerns over further Fed rate hikes. Lower oil prices, as shipping flows through the Strait of Hormuz gradually normalized, also eased fears of energy-driven inflation and supported risk appetite. Notable gainers included Tencent Holdings (2.7%), Xiaomi (5.7%), Knowledge Atlas (11.8%), Kuaishou Technology (6.2%), and AIA (1.5%).

The Hang Seng Index rose 0.8%, or 174 points, to close at 23,055 on Thursday, as gains in technology, financial, and retail stocks lifted the broader market. Buying was supported by bargain hunting after recent losses, despite a technology-driven selloff on Wall Street overnight. Investor sentiment toward technology shares remained positive amid growing optimism over the long-term outlook for Hong Kong-listed internet companies. In addition, sentiment was further supported by growing enthusiasm for AI after Chinese developer Zhipu briefly surpassed HK$1 trillion in market value last month. Meanwhile, according to reports Kevin Warsh said inflation expectations and inflation risks had eased in recent weeks while reaffirming the Federal Reserve's commitment to restoring price stability. Notable gainers were Tencent (0.1%), Xiaomi (4.2%), Meituan (3.1%), Innovent Biologics (7.0%), and AIA (1.4%).

The Hang Seng Index slipped 0.6%, or 146 points, to close at 22,881 on Tuesday, giving back part of the previous session’s gains as investors turned cautious despite continued policy support from Beijing. Sentiment remained subdued after China’s central bank conducted overnight reverse repo operations to maintain ample liquidity in the financial system, with the move providing limited support to equities. Investors also weighed concerns that Chinese stocks continue to lag the global artificial intelligence-driven rally despite strong advances in overseas markets, reflecting lingering uncertainty over China’s economic recovery. Losses were led by InSilico Medicine (-3.5%), Trip.com (-3.5%), Pop Mart (-2.0%), Akeso (-3.4%), and AIA (-1.3%). For the month of June, the Hang Seng Index dropped 9.1%, marking its weakest monthly performance this year and benchmark also lost 7.6% in the second quarter. Hong Kong market is closed on Wednesday for a public holiday.