Hang Seng Soars!
The Hang Seng Index closed up 327 points, or about 1.3%, to 24,825 on Friday, reversing the previous two days of decline. This increase marked its highest closing level in four months and brought the index to a weekly gain of 2.8%, marking its second consecutive positive week.
The rally was driven by improving sentiment toward mainland Chinese stocks, after the Beijing government committed to limiting large-scale price cuts by local companies. The technology sector led the gains, surging 1.7%, on news that Nvidia would increase supplies of H20 chips tailored to Chinese regulations and prepare new chips for the Asian market.
The consumer and financial sectors also experienced solid gains after US President Donald Trump signaled a softening of his policy toward China. This raised fresh hopes for a trade deal before the August 12 deadline. Blue-chip stocks such as Smoore (up 5.0%), Hansoh Pharma (3.6%), Nongfu Spring (3.5%), and Kuaishou Tech (2.1%) also supported the index's rise.
Although the market appeared buoyant, some market participants remained cautious ahead of the People's Bank of China's central bank (PBoC) lending rate decision next week. This decision is highly anticipated after the PBoC cut interest rates to a record low last June. Investors are also closely watching the release of Hong Kong's June inflation data, which could influence the direction of local monetary policy.
Source: (ayu-newsmaker)
