Hong Kong Stocks Extend Rally

The Hang Seng Index surged 160 points, or 0.6%, to 26,550 on Thursday, extending gains from the previous session as optimism over easing US-China tensions lifted sentiment across Hong Kong equities. Markets rose as investors priced in reduced geopolitical risk and potential stabilisation of US-China relations ahead of the Trump-Xi summit in Beijing. The advance also tracked broader regional strength, with technology-related stocks acting as the main driver of the rally. Tencent Holdings led gains, up 2.6%. Among other notable movers were Meituan Class (3.9%), InnoScience Technology (3.4%), Kuaishou Technology (4.8%), Xiaomi Corporation (2.2%), and Semiconductor Manufacturing International Corporation (1.6%). However, markets remain sensitive to developments in US economic data, Federal Reserve interest rate expectations, and any updates on US-China diplomatic talks, which could quickly shift momentum in either direction.
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