Hong Kong stocks jumped 413 points, or 1.6%, to 26,043 in early trade Friday, the first session of 2026, rebounding from prior losses and poised for a second straight weekly gain of about 1.0%. so far. Markets reopened after the New Year break amid a rally in U.S. futures, following solid year-end gains on Wall Street. While U.S. equities underperformed the strong returns of the past two years due to an April tariff-driven sell-off, 2025 annual gains held firm, buoyed by strength in the AI sector. All Hang Seng components advanced, led by tech, consumer, and property shares, though upside was capped by caution ahead of November retail sales data. Baidu surged over 6% after announcing plans to spin off its AI chip unit. Other top movers were SMIC (4.6%), Trip.com (3.7%), Xiaomi (2.7%), and Tencent (2.6%). Hong Kong equities in 2025 jumped nearly 28%, their second straight annual rise, boosted by a robust IPO market, easing Sino-U.S. trade tensions, and China’s growth-focused policies.
