Hong Kong Stocks Begin Week Higher

The Hang Seng Index rose 0.8%, or 200 points, to 25,873 on Monday, tracking broader Asian gains after softer-than-expected US jobs data reduced expectations of an imminent Federal Reserve rate hike. Lower Treasury yields and a weaker US dollar boosted risk appetite, particularly for technology and growth stocks. Sentiment also improved after China's annual inflation eased to 0.5% in July from 1.0% in June, the lowest reading in six months. Investors also watched Guotai Junan International ahead of its trading resumption following its parent's HK$28.6 billion take-private proposal, signaling further consolidation in China's brokerage sector. Hong Kong's longer-term appeal remained supported by HKEX's role as a gateway for international capital, though geopolitical tensions and elevated oil prices continued to pose risks. Notable movers included Tencent (0.7%), AIA (0.8%), Wuxi Biologics (4.5%), Xiaomi (0.4%) and Genscript Biotech (0.4%).

The Hang Seng Index edged up 0.5%, or 138 points, to close at 25,668 on Friday, recovering from an early decline as late-session buying helped the benchmark index finish in positive territory. The market came under pressure in the morning as investors locked in recent gains, but sentiment improved later in the day amid renewed interest in technology and selected heavyweight stocks. The rebound was supported by optimism over China’s economic outlook following stronger-than-expected trade data, which boosted confidence in the resilience of the country’s export sector. Beyond equities, China is also pushing to strengthen Hong Kong’s position as an international gold trading and storage center. Despite the modest advance, trading remained cautious as investors weighed global market conditions, interest-rate expectations, and the pace of China’s economic recovery. Notable movers included MiniMax (9.8%), Z.AI Co. (14.6%), Kingboard Laminates (9.9%), SMIC (2.4%), and Xiaomi (0.7%).

The Hang Seng Index declined 0.4%, or 110 points, to 25,420 on Friday as investors turned cautious amid rising geopolitical tensions and continued weakness in financial stocks. Asian markets traded lower after renewed tensions involving Iran pushed oil prices higher, fueling concerns that elevated energy costs could sustain inflation and delay interest rate cuts. Hong Kong-listed insurers and banks remained under pressure following concerns over China's stricter enforcement of taxes on offshore insurance products held by mainland residents, dampening expectations for cross-border wealth management demand. Losses were partly offset by gains in selected technology shares, led by AI firm MiniMax surging 6.5%, which rallied after joining the Hong Kong Stock Connect program, boosting optimism over stronger mainland investor participation. Other notable gainers included Tencent (0.7%), Z.AI Co. (5.2%), Kingboard Laminates (5.6%), and Wuci Biologics (3.0%).