The Hang Seng Index climbed 0.8%, or 200 points, to 25,873 on Monday, following broader gains across Asian markets after weaker-than-expected US employment data tempered expectations of an imminent Federal Reserve rate hike. The resulting decline in US Treasury yields and a softer US dollar lifted risk appetite, particularly for technology and growth shares.
Sentiment was further buoyed by data showing China’s annual inflation slowed to 0.5% in July from 1.0% in June, its lowest level in six months. Investors also focused on Guotai Junan International ahead of the resumption of its trading, after its parent company launched a HK$28.6 billion privatization proposal, underscoring the ongoing consolidation in China’s brokerage industry.
Hong Kong’s longer-term appeal remained underpinned by HKEX’s role as a key gateway for global capital flows into China, although geopolitical tensions and elevated oil prices continued to present headwinds. Among notable movers were Tencent (+0.7%), AIA (+0.8%), Wuxi Biologics (+4.5%), Xiaomi (+0.4%) and Genscript Biotech (+0.4%).
