FX.co ★ Hong Kong Equities Rally to 2-Month High

Hong Kong's stock market surged by 501 points, or 1.9%, reaching a two-month peak of 27,112 during early trading on Tuesday. This marked the third consecutive session of gains, with increases observed across all sectors. Investor sentiment was bolstered by optimism surrounding corporate earnings and regional economic growth, largely ignoring concerns from the U.S. regarding central bank independence. Chinese equities hit a decade-high on Monday, supported by positive outlooks for the artificial intelligence sector under favorable regulatory conditions. Meanwhile, concerns over deflation have lessened as consumer inflation reached a near three-year high, and decreases in producer prices were less severe. On Wall Street, both the S&P 500 and the Dow Jones Industrial Average closed at record highs the previous night, ahead of the release of U.S. inflation data and key bank earnings reports. However, the gains in Hong Kong were tempered by anticipation of forthcoming Chinese trade and GDP statistics. Zijin Gold International saw an increase of 2.8% amid soaring gold prices, with Cherry Auto rising by 3.2%, Hansoh Pharma by 3.0%, and HKEX by 2.4% among notable performers. Additionally, GigaDevice Semiconductor rose 3.2% on its debut, having raised HKD4.68 billion through a secondary listing.