Hong Kong Stocks Rebound Amid Tech Optimism as US Markets Face Correction

On Friday, Hong Kong stocks experienced a rise, putting an end to a five-day decline. This increase was driven by renewed investor interest in technology companies, fueled by hopes that advancements in artificial intelligence (AI) would support a bull market throughout the year. However, concerns surrounding CK Hutchison's asset sale, which has drawn political scrutiny, negatively impacted the company's stock.

The Hang Seng Index rose by 0.9 percent, reaching 23,677.68 points by 10 am local time. This comeback came after a significant 3.7 percent downturn over the previous five trading days, largely influenced by fears of trade conflicts. The Hang Seng Tech Index also saw growth, climbing 0.8 percent, while the Shanghai Composite Index mirrored this upward trend with a gain of 0.8 percent.

Notable gains were seen in several tech stocks: Alibaba Group Holding increased by 2.9 percent to HK$135.30, Wuxi Biologics surged by 10 percent to HK$25.80, and Baidu jumped by 3.8 percent to HK$92.85. Other significant movers included Mengniu Dairy, which rose by 4.7 percent to HK$19.02, Zijin Mining Group up by 4 percent to HK$16.94, and electric vehicle maker BYD, which gained 1.7 percent to HK$367.

In contrast, CK Hutchison saw its shares tumble by 5.9 percent to HK$46.50 following a critical article from the state-backed newspaper Ta Kung Pao. The report raised concerns over the company's sale of port assets, including two in Panama, to US investors.

Overall, Hong Kong's stock market has risen 17 percent this year, with the tech index experiencing a remarkable 28 percent surge. This rally has been driven in part by the AI achievements of Chinese startup DeepSeek. Global financial institutions, such as Citigroup and Goldman Sachs, have also expressed a more positive outlook on Chinese stocks, particularly as US equities enter a correction phase.

Meanwhile, US stock markets faced declines after President Trump announced plans to impose new tariffs of 200 percent on European wines and other alcoholic beverages. This announcement pushed the S&P 500 Index down to a six-month low, marking an overall decline of over 10 percent since its high in February. The Nasdaq Composite Index also fell by 2 percent.

Stocks, Markets, Tech