FX.co ★ Hang Seng Reverses Early Losses, Logs Second Straight Weekly Gain

The Hang Seng Index advanced by 149 points, or 0.6%, to conclude at 26,085, effectively reversing earlier losses and marking its second consecutive session of gains. Optimism was bolstered by favorable movements in U.S. futures, ahead of the release of the U.S. Personal Consumption Expenditures (PCE) index—a key inflation indicator closely watched by the Federal Reserve. This comes in anticipation of the Federal Open Market Committee's (FOMC) year-end meeting next week, where a further interest rate cut is anticipated. Investors set aside concerns about China's shadow banking sector, hopeful for potential new economic stimuli from Beijing to counteract economic deceleration. Gains were broad-based, with notable contributions from sectors such as technology, financials, and consumer goods. The Hong Kong market recorded a second consecutive weekly gain of 0.8%, spurred by optimism in artificial intelligence developments after Moore Threads Technology Co., often referred to as "China's Nvidia," saw its value surge nearly fivefold during its debut on the Shanghai stock exchange. This stood in stark contrast to less successful initial public offerings in Hong Kong, such as Guangzhou Xiao Noodles and Guangdong Tianyu Semiconductor. Other notable performers included Xiaomi Corp. with a gain of 2.5%, Zijin Gold International at 1.7%, and Meituan increasing by 1.2%.