FX.co ★ Hong Kong Shares Rally

Hong Kong stocks advanced 341 points, or 1.4%, reaching 23,824 during Thursday morning trading, building on gains for a second consecutive session with widespread market improvements. Investor sentiment was bolstered after notable Wall Street banks expressed optimistic views on Chinese stocks. Morgan Stanley increased its year-end targets for mainland stocks for the second time this year, aiming for 2025, and Goldman Sachs predicted further growth fueled by positive earnings adjustments. A modest year-over-year decrease of 0.3% in China's industrial profits for the first two months of 2025 offered additional encouragement, following a more significant 3.3% decline in 2024, highlighting the effectiveness of Beijing's stimulus efforts. However, gains were moderated by a subdued performance on Wall Street overnight, as investors assessed the impact of President Trump's 25% tariffs on auto imports. Investor caution lingered ahead of the release of China's March PMI data scheduled for next week. Notable early performers included Laopu Old (8.3%), BOC Hong Kong (7.0%), Semiconductor Manufacturing (5.0%), China Mengniu Dairy (3.9%), and Hansoh Pharmaceutical (3.6%).