Hang Seng +1.8%: Alibaba Leads, Baidu Soars
The Hang Seng Index rose 1.8% to 26,908.39 in Hong Kong—its biggest daily gain since September 1 (2.2%)—after a flat session the previous day. The gains were broadly driven: 60 of 88 stocks advanced and 3 of 4 sectors were in the red, led by the trade and industrials group. Alibaba rose 5.3%, the largest contributor to the index's gains, while Baidu surged 15.7%, the day's biggest gainer.
In the short term, momentum remains solid: the Hang Seng is up 2.7% in the last five days and 6.5% in the last 30 days. Year-to-date, the index has gained 34%—heading for its best annual performance since 2017. On a 52-week basis, the Hang Seng has climbed 52%, reaching its highest level in a year and 54.9% above its low on September 17, 2024.
In terms of valuation, the Hang Seng is trading at a trailing P/E of 12.7 times and 12.8 times estimated forward earnings for the year, with a trailing 12-month dividend yield of 2.9%. The combined market capitalization of its members is HK$32 trillion. For regional comparison, the MSCI AC Asia Pacific Index is up 21% over the same 52-week period.
Market risk has increased slightly, as 30-day volatility rose to 17.13%, compared to 16.53% in the previous session and an average of 16.56% for the month. However, the broad gains in sectors and leading issuers indicate that risk-on sentiment still dominates today's trading.
Source: Bloomberg.com
