Hong Kong stocks gain most in nearly 3 weeks as dip-buying offsets global sell-off
A rebound in US equities overnight provided support for Hong Kong and other Asia-Pacific markets
Hong Kong stocks rose by the most in nearly three weeks on Thursday, tracking gains in global markets as dip-buying kicked in after a sell-off triggered by jitters over elevated valuations of technology companies.
The Hang Seng Index rallied 2.1 per cent to 26,485.90 at the close, the biggest gain since October 20. The Hang Seng Tech Index advanced 2.7 per cent. On the mainland, the CSI 300 Index climbed 1.4 per cent and the Shanghai Composite Index rose 1 per cent.
A rebound in US equities overnight provided support for Hong Kong and other Asia-Pacific markets, with investors betting on a pattern repeated this year: every major pullback is followed by a record-setting run. Both US and global stocks rose to all-time highs after a meltdown spurred by the Trump administration’s imposition of tariffs on global trading partners in April. Equities logged fresh highs again last month after investors bought into a retracement sparked by a resurgence in US-China tensions.
Sentiment was also buoyed after two private reports indicated the resilience of the US services industry and the labour market. Meanwhile, the Supreme Court questioned the legitimacy of US President Donald Trump’s global tariffs, raising hopes of a rollback of the levies that are expected to add inflationary pressure.
“We are braced for more volatility against a backdrop of lofty valuations in the tech sector,” said Xu Zhi, an analyst at Central Securities. “We expect the market to consolidate in the near term. If tech stocks fall to a relatively attractive level, investors can consider adding to their exposure.”