Hong Kong equities jumped 648 points, or 2.4%, to 27,056 in Monday’s morning session, rebounding from the previous day’s weakness on broad-based sector gains. Sentiment improved ahead of the mainland markets’ reopening on Tuesday after a week-long holiday.
Adding to the optimism, the Financial Times reported that Trump’s proposed 15% global tariff could inadvertently benefit some of the very countries he has frequently criticized, including China and Brazil. Separately, U.S. Trade Representative Greer said the new measures would not derail Trump’s planned meeting with Chinese President Xi Jinping.
However, a sharp decline in U.S. equity futures limited further upside, even after Wall Street closed higher on Friday, led by gains in consumer-related stocks.
On the domestic front, Hong Kong’s unemployment rate climbed to 3.9% in the three months to January, its highest level since September 2022. Investor caution also increased ahead of a busy data calendar this week, featuring Hong Kong’s final Q4 GDP figures, January inflation, and trade statistics.
Early outperformers included Meituan (up 3.5%), Zijin Mining Group (Zijin Gold Intl., up 3.4%), SMIC (up 2.9%), Tencent (up 2.2%), and Xiaomi Corp. (up 1.8%).
