Hong Kong's stock market experienced an uptick on Monday morning, with the index rising by 201 points, or 0.8%, to reach 26,360. This marks the third consecutive session of gains, fueled by a decrease in China-U.S. trade tensions that bolstered investor confidence. Key negotiators from both nations reported reaching a consensus on major disputes, paving the way for a forthcoming meeting between Presidents Donald Trump and Xi Jinping to conclude a trade agreement.
On the economic data front, Chinese industrial profits showed a year-on-year increase of 3.2% for the first nine months of 2025. This is an improvement from the previous growth rate of 0.9%, with profits in September alone soaring by 21.6%—the fastest growth observed since November 2023—driven by measures aimed at reducing surplus capacity.
In Hong Kong, business sentiment enhanced considerably, climbing to -2 in the fourth quarter from -8 in the third quarter, marking the third consecutive quarterly improvement. Nonetheless, the gains were tempered by investor caution ahead of China's official PMI release for October. All sectors posted advances, prominently led by consumer, technology, and property stocks. Notable early performers included Wuxi Biologics, which surged by 5.1%, Prada by 3.2%, Techtronic Industries by 2.9%, and SMIC by 2.6%.
