The Hang Seng index climbed by 159 points, equivalent to a 0.7% increase, closing at 23,689 on Monday. This gain represents a recovery from earlier losses and marks the second consecutive day of upward movement. Gains were observed across all sectors, with property, technology, and financials leading the ascent. The positive mood was bolstered by a significant uptick in mainland markets, as investors anticipate potential new stimulus measures to be discussed at China's top legislative meeting scheduled later this week. Traders showed resilience against indications of a soft start in Wall Street following remarks from San Francisco Fed President Mary Daly, who hinted at the possibility of rate cuts in the fall, contrary to Governor Christopher Waller’s forecast of a July adjustment.
Meanwhile, geopolitical tensions remain heightened due to the U.S. strikes on Iranian nuclear sites, which led to Iran's pledge of retaliation and prompted the U.S. State Department to issue a global caution advisory. Despite these developments, the conflict exerted a limited immediate effect on local stock markets. Notably, CSPC Pharma saw a 1.3% increase after receiving approval for a new pain treatment, while Laopu Old advanced by 7.8%, and both SMIC and Akeso Inc. increased by 4.8%.
