FX.co ★ Hang Seng Reverses Early Losses to Close at Multi-Year High

The Hang Seng Index advanced by 136 points, or 0.5%, to close at 25,130 on Monday, reversing its earlier decline to finish higher for a third consecutive session. This rise was predominantly driven by gains in property and consumer stocks. The index reached its highest level since November 2021, following China's announcement of the commencement of a significant $170 billion hydropower project in Tibet, which bolstered confidence in infrastructure-related sectors. Property stocks rose by 1.3% on this development, while consumer stocks saw modest gains. This was aided by positive signals regarding Sino-U.S. trade relations, Beijing's efforts to draw long-term capital into the equities market, and new supportive measures for critical industries such as machinery, automobiles, and electrical equipment. Concurrently, U.S. futures made slight advancements in anticipation of key tech earnings reports expected this week. CK Hutchison surged by 2.5%, reaching a four-and-a-half-month high, amid reports of China COSCO Shipping potentially joining a global group to acquire Li Ka-shing's overseas port assets. Other significant gainers included Sinotruk Ltd. with an 8.0% rise, China Hongqiao at 3.7%, SMIC with a 2.8% increase, and Techtronic Industries at 2.6%.