FX.co ★ Hong Kong Market Rallies to 2021 Peak Levels

On Thursday morning, Hong Kong's stock market experienced a surge, with shares climbing 378 points, or 1.4%, pushing the Hang Seng Index to 27,238. This marks the third consecutive day of gains as trading resumed after a hiatus on Wednesday. The index reached its highest point since July 2021, following a moderate uptick on Wall Street where investors put aside concerns over a potential U.S. government shutdown and instead focused on data suggesting the Federal Reserve might continue to reduce interest rates this year. Investor sentiment was further enhanced by the People's Bank of China's recent commitment to reinforce collaboration with fiscal policy to stimulate economic growth. On the economic data front, China's current account surplus ballooned to USD 128.7 billion in the second quarter, a figure more than double compared to the same period last year. Most sectors saw advances, particularly the technology sector, with significant gains from SMIC (7.6%), Kuaishou (7.5%), Tencent (2.6%), and Meituan (2.4%). Additionally, consumer and financial stocks rose as traders reacted positively to news of an upcoming October plenum aimed at planning China's five-year economic strategy. However, gains were tempered since the mainland markets remain closed for Golden Week until October 8.