The Hang Seng Index jumped 669 points, or 2.5%, to close at 27,082 on Monday, rebounding from weakness in the previous session amid broad-based sector gains. Market sentiment strengthened after the U.S. Supreme Court struck down former President Trump’s wide-ranging tariff measures, fueling expectations of reduced levies on Chinese goods. The benchmark hovered near a two-week high, further supported by news that the Hong Kong government will allocate HKD 4 billion to compensate owners of homes destroyed in November’s high-rise fire.
Mainland Chinese markets are set to reopen on Tuesday following the week-long Lunar New Year holiday, with early holiday data indicating “broadly firm” consumer demand, according to Citi analysts.
Technology stocks led the advance, with the sector index climbing more than 3% from Friday’s seven-month low, driven by renewed optimism about China’s AI industry. Semiconductor Manufacturing International Corp. (SMIC) rose 4.6%, while Alibaba Group Holding’s Hong Kong-listed shares gained 3.6% and Tencent added 3.5%.
Gold-related stocks also rallied in tandem with the rise in bullion prices. Zijin Mining Group climbed 7.2%, Zhaojin Mining advanced 5.6%, and Lao Feng Xiang (Laopu Gold) added 2.8%.
