Hang Seng Rises, AI Stock Optimism Resists Geopolitical Concerns
The Hang Seng Index rose 155 points, or 0.6%, to 26,560 on Tuesday (May 12), continuing its gains from the previous session. This increase occurred as regional sentiment improved thanks to investor interest in artificial intelligence (AI) stocks, despite the market still being overshadowed by geopolitical tensions.
Support came from reports that market participants remained bullish on the "AI trade" despite the US and Iran not reaching a peace agreement, while oil prices also rose amid the conflict stalemate. The combination of optimism about the technology sector's growth prospects and persistent geopolitical risks helped the market move higher, albeit with a cautious attitude.
On the Hong Kong stock exchange, financial and technology stocks led the gains. Continued buying interest in growth stocks and AI-related issuers helped offset broader caution. Several stocks that recorded significant movements included Kuaishou Technology (+10.1%), Tencent (+0.1%), SMIC (+1.4%), AIA Group (+0.4%), and Techtronic Industries (+0.7%).
Despite the index's strengthening, trading activity remained cautious. Investors are monitoring developments in Middle East tensions and preparing for the release of Hong Kong's next economic data for clearer signals regarding the direction of growth and the resilience of the recovery. (asd)
Source: Newsmaker.id
