Hong Kong Stocks Rise as Oil Slips, Tech Leads

The Hang Seng Index rose 0.9%, or around 214 points, to around 24,819 on Friday, as easing oil prices and softer US Treasury yields improved market sentiment after the Federal Reserve raised interest rates by 25 basis points to 3.75%-4.00% and signaled the possibility of another hike this year. Brent crude fell below $104 a barrel after declining for a third straight session, easing concerns over inflation and higher borrowing costs. Wall Street also rebounded sharply overnight, with the S&P 500 and Nasdaq gaining more than 1%, supporting risk appetite across Asian markets. Technology shares led gains in Hong Kong, tracking the tech-led rally on Wall Street. Notable movers included Z.AI Co. (4.5%), Tencent (0.7%), Lenovo (2.7%), MiniMax (7.3%), and SMIC (2.4%). Investors continued to monitor developments in the Middle East and the outlook for further US monetary tightening, while attention also turned to the planned meeting between President Trump and President Xi next week.

The Hang Seng Index declined 0.4%, to close at 24,604 on Thursday, paring a steeper intraday loss as biotech and semiconductor shares outperformed and helped cushion the broader decline. The market remained cautious after the US Federal Reserve raised interest rates by 25 basis points to 3.75%-4.00% and signaled the possibility of another hike later this year, strengthening the US dollar and pushing Treasury yields higher. The Hong Kong Monetary Authority raising its base rate by 25 basis points to 4.25% following the Fed’s move, weighing on Hong Kong property stocks as higher borrowing costs threatened recovery. However, CICC said Hong Kong stocks could face greater volatility from renewed US monetary tightening, although the impact should be short-lived unless the Fed begins a sustained rate-increase cycle. Among notable stocks, Tencent (-1.7%), Kingboard Laminates (-1.9%) and HKEX (-1.8%) declined, while Z.AI Co. (+2.9%), MiniMax (+7.1%) and Genscript Biotech (+14.3%) rose.

The Hang Seng Index rose to 0.2%, or 47 points, to close at 24,713 on Wednesday, led by tech shares, but gains were capped as investors held back from large bets ahead of the U.S. Federal Reserve's policy decision later in the day. Sentiment was pressured by elevated US Treasury yields, with the 10-year yield having briefly breached 5% in the previous session, while a stronger US dollar also weighed on Asian risk assets. Technology stocks provided support, with the Hang Seng Tech Index rising 0.9% by midday. Zhipu AI surged more than 8%, ending an 11-session losing streak, while MiniMax, SMIC and Hua Hong Semiconductor gained more than 5% to 7%, meanwhile Xiaomi (-1.5%), Kuaishou (-1.7%) and Akeso (-3.9%) declined. In the region, reports highlighted a potential US$2.6 billion financing for Hong Kong data-center development, reflecting growing investment in the city's AI and digital-infrastructure sector.