On Monday, the Hang Seng Index increased by 274 points, or 1%, closing at 26,434, marking its third consecutive session of gains. This upward trend was bolstered by a rally in U.S. futures, reflecting renewed optimism for a potential U.S.-China trade agreement. This optimism was spurred by top officials outlining a framework to alleviate tensions ahead of the upcoming meeting between President Trump and Xi Jinping scheduled for later this week. Concurrently, the U.S. Federal Reserve is anticipated to reduce interest rates by 25 basis points, following the news that consumer prices rose less than expected in September.
In recently released economic data, China's industrial profits reported a 3.2% year-on-year growth in the first nine months of 2025, accelerating significantly from the previous 0.9% growth. September's figures showed a remarkable surge of 21.6%, marking the fastest pace since November 2023, amid initiatives to address overcapacity issues. Meanwhile, in China, the Shanghai Composite Index extended its record streak for a third session. Despite this, gains in Hong Kong faced limitations due to cautious sentiment ahead of China's official October Purchasing Managers' Index (PMI). The technology sector spearheaded the advance, rising nearly 2%. Notable performers included SMIC, which climbed 4.4%, China Hongqiao with a 3.6% increase, Citic up by 3.4%, and Wuxi Biologics which rose by 3.2%.
