The Hang Seng index experienced significant gains on Thursday, climbing 431 points or 1.6% to close at 27,287. This marks its highest point in over four years and represents the third consecutive day of upward movement, supported by broad sector increases. Leading the charge were technology stocks, notably SMIC, which surged by 13% following Samsung and Hynix's announcement of partnerships to supply OpenAI data centers. Other prominent tech performers included Kuaishou Technology, up 8.3%, Tencent, advancing 2.6%, and Meituan, which increased by 1.5%.
Consumer stocks also saw appreciable rises, spurred by weak U.S. employment figures that fueled speculation regarding potential rate cuts by the Federal Reserve. Electric vehicle manufacturers also thrived, with Nio climbing 6.6% to reach a one-year high, bolstered by record monthly and quarterly sales. Pharmaceutical stocks gained amid policy stability following an agreement between Pfizer and U.S. President Trump to reduce drug prices in return for tariff relief. This development boosted shares in Hansoh Pharma by 5.2%, Innovent Biologics by 4.5%, and Wuxi Biologics by 2.8%.
Additionally, Alibaba saw a 3.9% increase after JP Morgan substantially raised its target price for the company. However, these gains were tempered by investor caution as anticipation built for August's retail sales data in Hong Kong. Meanwhile, mainland China markets remained closed for a holiday break.
