FX.co ★ Tech Gains and Trade Optimism Propel Hang Seng at Finish

The Hang Seng Index rose by 550 points, equivalent to a 2.1% increase, closing at 26,486 on Thursday. This surge represents its most significant daily rise since mid-August, reaching its highest point in a week following a previously subdued performance. Gains were seen across all sectors as Shanghai's benchmark index regained the pivotal 4,000 level, buoyed by optimism surrounding China’s efforts to achieve technological self-sufficiency, particularly benefiting semiconductor and AI-related stocks. The market's risk appetite was further bolstered by encouraging U.S. economic data and robust corporate earnings, which contributed to a rebound on Wall Street. Key technology players such as SMIC, Horizon Robotics, and Trip.com saw notable rises of 7.3%, 3.2%, and 2.5%, respectively. Cathay Pacific experienced a significant jump of 4%, reaching a three-month high after announcing its intention to repurchase Qatar Airways’ remaining stake. Hong Kong markets are on track to secure solid gains this week, recovering from an earlier decline, supported by a one-year extension of the U.S.–China trade agreement, which continues to suspend the majority of tariffs. Traders are now looking forward to China's trade and inflation data for October, which is scheduled for release on Friday and over the weekend.