Hong Kong Stocks Gain on Bargain Hunting

The Hang Seng Index rose about 0.2% to 23,370 on Wednesday, snapping a five-day losing streak, as bargain hunting emerged after the index’s recent underperformance. Improved risk sentiment also supported the market after signs of progress in US-Iran peace talks eased concerns over potential disruptions to global energy supplies. Lower oil prices further helped reduce inflation worries and boosted appetite for risk assets across markets. Investor sentiment was further underpinned by continued enthusiasm for artificial intelligence and semiconductor-related investments. Demand for AI exposure remained strong after a leveraged ETF linked to SK Hynix became Hong Kong’s largest ETF by assets. However, gains were capped by caution over US interest rates and concerns about the pace of China’s economic recovery. Notable movers included Tencent (+1.0%), Knowledge Atlas (+8.9%), SMIC (+3.2%), and Xiaomi (+1.7%).

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