FX.co ★ Hang Seng Jumps 2.8% This Week

The Hang Seng Index experienced a notable increase of 327 points, or 1.3%, closing at 24,825 on Friday. This rise marked a reversal from two consecutive losing sessions, with gains observed across all sectors. The index achieved a four-month high, advancing by 2.8% for the week, and registering its second consecutive weekly increase. Investor sentiment was buoyed by strong performance in mainland stocks, following Beijing's recent commitment to address extensive price reductions by Chinese companies. The technology index in Hong Kong surged by 1.7%, driven by optimism stemming from Nvidia’s plans to enhance the availability of China-compliant H20 chips and introduce more advanced chips into the market. This positive trend extended to the consumer and financial sectors, as U.S. President Trump adopted a more conciliatory approach towards China, igniting hopes of a trade agreement before the August 12 deadline. Among the standout performers were Smoore Hlds. with a 5.0% rise, Hansoh Pharma at 3.6%, Nongfu Spring at 3.5%, and Kuaishou Tech. climbing by 2.1%. However, gains were tempered by a degree of caution in anticipation of the People's Bank of China’s upcoming decision on July loan prime rates, following record lows in June, alongside forthcoming data on Hong Kong's inflation for June.