FX.co ★ Hong Kong Shares Set to End Week on Solid Gains

In early Friday trading, Hong Kong stocks experienced a slight upward movement, reaching 26,944, as they attempted to offset losses from the previous session. This improvement was observed across most sectors and was driven by positive sentiment following remarks from a People's Bank of China (PBoC) official. The official indicated that China's central bank foresees potential to lower both the reserve requirement ratio and policy rates further within the year to stimulate economic growth. Additionally, the board announced a reduction in the structural policy tools' rates, including a cut in the one-year relending facility rate to 1.25% from 1.5%, effective Monday. On a weekly basis, the Hang Seng is on track for an approximately 2.5% increase, rebounding from last week's decline. This rise is supported by the U.S.-Taiwan trade agreement under which TSMC plans to establish new factories in Arizona as part of a $250 billion investment. Concurrently, Washington will reduce tariffs on Taiwanese goods from 20% to 15%. However, market gains were tempered by investor caution ahead of the release of China's fourth-quarter GDP and December activity data next week, which includes retail sales and industrial output figures. Among notable stocks, Techtronic Industries rose by 3.9%, SMIC by 2.6%, Minimax Group by 2.3%, and CK Hutchison by 2.2%.