FX.co ★ Hang Seng Rallies Despite Weekly Decline

On Friday, the Hang Seng index experienced a significant rise, climbing 446 points, or 1.8%, to conclude at 25,977. This uptick followed a relatively quiet session the previous day and reflected robust gains across various sectors. The boost was partly driven by new record highs reached by two key Wall Street indices on Thursday, following the Federal Reserve's third interest rate cut of the year. Investor sentiment was further enhanced by the uptick in mainland stock markets after Chinese leaders, during the Central Economic Work Conference, committed to sustaining a "proactive" fiscal policy in 2026 to bolster consumption, investment, and overall growth. Additionally, President Xi Jinping's remarks highlighted 2025 as "a truly extraordinary year" with assured achievement of significant targets. Notable market changers included China Hongqiao (-4.0%), Kuaishou Technology (-2.5%), Xiaomi Corporation (-2.4%), and AIA Group (-2.3%). Despite the day's gains, Hong Kong stocks recorded a weekly decline of 0.4%, marking the first decrease in three weeks. The dip was attributed to investor caution ahead of China's November economic activity data, expected next week, and apprehensions concerning the possibility of fewer Fed rate cuts in the coming year.