Hang Seng Rises 2.5%: Tariffs Ease, Tech & Gold Ignite Rally
The Hang Seng Index rallied sharply by 669 points (+2.5%) to close at 27,082 on Monday, reversing the previous session's decline. This gain closed at a nearly two-week high, with gains across sectors.
Sentiment improved after market participants assessed the possibility of a lighter tariff burden on China following the US Supreme Court's ruling overturning Trump's massive tariff measures. Expectations of easing tariff pressures have revived risk-on sentiment in Asia.
Domestically, support also came from Hong Kong's plan to spend HKD 4 billion to buy out homes for residents affected by a high-rise fire in November. Market focus now shifts to the reopening of mainland Chinese markets on Tuesday after the Lunar New Year holiday, with preliminary holiday data showing quite solid demand, according to Citi analysts.
Technology stocks were the main driver of the rally: the sector index surged more than 3% from a seven-month low on Friday, buoyed by optimism about China's AI development. SMIC rose 4.6%, Alibaba (HK) +3.6%, and Tencent +3.5%. Gold-related stocks also surged as bullion strengthened, including Zijin Gold Intl. (+7.2%), Zhojin Mining (+5.6%), and Laopu Gold (+2.8%). (Asd)
Source: Newsmaker.id
