FX.co ★ Hang Seng Jumps 1.4% at Finish

On Monday, the Hang Seng index rose by 377 points, or 1.4%, closing at 26,608, continuing its upward trend from the previous session with widespread market increases. The technology sector was at the forefront of this rally, with the sector index climbing 3.1%, closely followed by consumer and property stocks. Investor optimism was bolstered by the Shanghai Composite reaching a decade high, signaling a robust start to the year for the mainland. The risk of deflation in China diminished in December, and expectations increased that the Beijing government might enhance measures to bolster both demand and supply, thereby potentially uplifting the earnings outlook. However, further gains were constrained by a notable decline in U.S. futures, following the issuance of grand jury subpoenas to the Federal Reserve related to Chair Powell’s testimony. Powell referred to these subpoenas as a pretext tied to Trump's pressure campaign. Additionally, there was a cautious sentiment leading up to significant Chinese economic data releases scheduled for this week, including December's trade figures and fourth-quarter GDP statistics. Among the standout performers were Meituan, which gained 6.3%, JD Health International with a 4.8% increase, Xiaomi Corporation rising by 2.2%, Tencent Holdings up by 1.9%, and Zijin Mining Group with a 1.5% climb.