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Hong Kong stocks surged on Monday, rebounding from the biggest sell-off in a month ahead of a week packed with major company earnings and a deluge of US economic data delayed by the government shutdown.
The Hang Seng Index closed 2 per cent higher at 25,716.50, recovering most of the 2.4 per cent loss on Friday. The Hang Seng Tech Index jumped 2.8 per cent.
On the mainland, the CSI 300 Index slipped 0.1 per cent and the Shanghai Composite Index added 0.1 per cent.
Alibaba Group Holding rallied 4.7 per cent to HK$154.50 after its artificial-intelligence app Qwen recorded more than 10 million downloads a week after its launch. The company will also report its quarterly earnings after the market close on Tuesday.
Tencent Holdings gained 2.4 per cent to HK$624.50, and online games operator NetEase jumped 5.9 per cent to HK$216.60. Search-engine operator Baidu advanced 4.2 per cent to HK$111.80 after JPMorgan Chase boosted the stock to overweight from neutral, citing AI and cloud as key business drivers. Biopharmaceutical firm Innovent Biologics, which will join the Hang Seng Index next month, surged 5.4 per cent to HK$92.
The risk-off mood that spurred an exodus from risk assets including bitcoin and tech stocks last week eased after Federal Reserve governor John Williams flagged his support for an interest-rate cut this month, a comment that should help support the lofty valuations of the so-called Magnificent Seven US tech titans. The possibility of a 25-basis-point cut at the Fed’s policy meeting on December 11 rose to 69.4 per cent from 44.4 per cent a week ago, according to the CME Group.
