Hong Kong stocks saw significant gains on Friday, driven by optimism surrounding potential trade talks between China and the US, as well as strong earnings reports from several tech giants. The Hang Seng Index rose by 1.7%, closing at 22,504.68, marking its third consecutive weekly gain. The Hang Seng Tech Index surged 3.1%, recovering 19.2% from a recent low on April 7, which was heavily influenced by tariff concerns. The Hong Kong market will be closed for a public holiday on Monday.
Mainland Chinese stock exchanges were closed for the Labour Day holiday and are set to resume trading on Tuesday. In April, the benchmark CSI 300 index dropped by 3%.
Among the biggest gainers on the Hong Kong Stock Exchange was Xiaomi, which rose by 6.3% to HK$53.10 after the company reported an increase in electric vehicle (EV) deliveries for April. Deutsche Bank also raised its target price for the company to HK$74 from HK$71.50. E-commerce giant Alibaba saw its stock climb 3.8% to HK$122 after unveiling new artificial intelligence (AI) models. Hong Kong Exchanges and Clearing, the operator of the city’s stock exchange, gained 3.1%, reaching HK$351.20. Gold producer Zijin Mining also saw a 2.8% rise to HK$17.46 after announcing plans to spin off and list its overseas gold businesses. Biotech firm Wuxi AppTec surged 7.1% to HK$64.40.
Meanwhile, Standard Chartered Bank posted a modest 0.7% increase to HK$113.60 following a quarterly profit that exceeded expectations. On the other hand, HSBC Holdings saw a slight decline of 1% to HK$86.20, following the announcement that Chairman Mark Tucker would retire after eight years in the role. Other notable losses included Sinopharm Group, which dropped 2.1% to HK$17.96, and Bank of China (Hong Kong), which fell 1.2% to HK$31.80.
China’s Commerce Ministry indicated it was considering trade talks with the US, following repeated statements by senior US officials expressing interest in discussing tariffs. The ministry urged the US to show “sincerity,” as it had previously initiated the tariff and trade war. Despite these statements, analysts remain cautious, noting that the trade tensions are far from resolved.
In the US, tech giants Meta and Microsoft reported positive earnings and a bullish outlook on AI investments, boosting investor sentiment. This, despite a more cautious outlook from Amazon and Apple, helped lift the Dow Jones Industrial Average by 0.2%, the S&P 500 by 0.6%, and the Nasdaq by 1.5%. In Asia-Pacific, stock markets also saw positive performances, with Japan’s Nikkei 225 up 1%, Australia’s S&P/ASX 200 rising 1.1%, and South Korea’s Kospi adding 0.1%.
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