Hong Kong stocks edged closer to a two-month high as investor sentiment improved on the back of strong corporate earnings and easing global trade tensions. At the mid-day break, the Hang Seng Index rose by 1.4 per cent to reach 23,433.11, mirroring a similar gain in the Hang Seng Tech Index. The market’s advance was underpinned by optimism following JD.com’s robust quarterly results and anticipation of upcoming earnings from major technology firms such as Tencent Holdings and Alibaba Group Holding.
JD.com’s share price climbed 2.7 per cent to HK$140.70 after the e-commerce giant reported a 16 per cent year-on-year increase in first-quarter sales, marking its strongest earnings growth in three years. Investor focus is now shifting to Tencent, which gained 2 per cent to HK$516 ahead of its results due later in the day. Alibaba also advanced 1.6 per cent to HK$128.10, with its earnings announcement scheduled for Thursday.
Mainland indices showed more modest gains, with the CSI 300 Index rising 0.3 per cent and the Shanghai Composite Index adding 0.2 per cent, reflecting broader regional strength amid signs of improving investor confidence.
Market analysts are attributing the rally to a combination of internal policy support and external geopolitical developments. According to Evan Li, an analyst at Bocom International Holdings, “The tariff episode is expected to have a limited impact on corporate earnings, and results from most of the sectors are expected to be stable. Hong Kong stocks now have a slew of tailwinds after improvement in both the internal and external environments.” He highlighted the benefits of a reduced risk of a global recession and China’s domestic stimulus efforts, including interest rate cuts and measures to encourage consumption.
Investor confidence received a significant boost following the 90-day truce in the trade dispute between the United States and China. The agreement to pause further tariff increases has removed a major source of uncertainty from the markets, helping to reignite appetite for risk assets globally. Since hitting a low in April, the Hang Seng Index has now rebounded by 18 per cent, recovering all of the losses incurred during a sharp sell-off triggered by US political rhetoric in early April. With trade tensions easing and corporate fundamentals showing resilience, the outlook for Hong Kong equities appears increasingly favorable.
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