FX.co ★ Hong Kong Stocks Rebound, Eye Weekly Gains

Hong Kong stocks surged by 240 points, nearly 1.0%, reaching 24,734 in early trading on Friday. This movement marks a rebound after two days of losses, inspired by the record highs achieved by the S&P 500 and Nasdaq, which were fueled by robust U.S. retail sales, positive earnings reports, and sustained optimism in artificial intelligence. The Hang Seng Index reached a four-month peak and is poised for a second consecutive weekly gain, having risen 2.5% so far. Investor sentiment was further bolstered by U.S. President Trump's tempered language regarding China, raising hopes for a potential trade agreement. All sectors saw advancements, notably in technology, consumer, and financial stocks, as gains in mainland markets prompted renewed buying. Leading the early gains were Hansoh Pharma with a rise of 3.2%, Nongfu Spring up 3.1%, China Hongqiao Group increasing by 2.9%, and Zhaojin Mining up 1.7%. Despite this growth, gains were limited by data indicating that Hong Kong's unemployment rate remained at a two-year high of 3.5% for the three months ending in June. Additionally, caution prevailed ahead of next week's release of China's July Loan Prime Rate, following the People's Bank of China's decision in May to maintain rates at historically low levels to support the economy amid tariff concerns.