Hong Kong Advance on Tech, Health-Tech Gains

The Hang Seng Index rose 0.5%, or 121 points, to 24,872 on Monday, led by technology and health tech stocks as Asian equities benefited from continued optimism over strong demand for AI infrastructure, while easing oil prices provided some relief as Brent crude slipped to around $102 a barrel amid hopes of a gradual restoration of Saudi supply. Hong Kong’s IPO market also remained in focus, with AI infrastructure software provider Transwarp Technology (6.2%) making its Hong Kong debut after raising funds at HK$49 per share and gaining access to Southbound Stock Connect on its first trading day. Notable movers included Tencent (2.1%), XtalPi (4.1%), SMIC (1.0%), Genscript Biotech (6.7%) and Innovent Biologics (6.0%). Investors meanwhile awaited further developments ahead of the planned meeting between US President Donald Trump and Chinese President Xi Jinping, with trade, technology and AI restrictions among the issues in focus.

The Hang Seng Index rose 0.6%, or 146 points, to close at 24,751 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. (5.4%), Lenovo (9.5%), MiniMax (18.9%), and SMIC (4.4%). 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.