The Hang Seng Index rose 79 points, or 0.3%, to close at 25,078 on Friday (August 29th), snapping a three-day decline driven by gains in consumer and technology stocks. The index gained 1.2% in August, its fourth consecutive monthly gain, driven by momentum in Chinese stocks, which are nearing a decade-high thanks to strong institutional inflows, attractive valuations, and pro-growth policies, particularly around AI innovation and technological self-sufficiency.

The market pared earlier gains as US index futures fell sharply ahead of the PCE inflation data, the Fed's preferred benchmark, with traders looking for clues on the direction of interest rates. Investors are also awaiting China's official PMI data due later this week, with lingering concerns about weak demand, trade tensions, and the risk of deflation.

Electric vehicle makers led the gains after Beijing pledged to curb "unregulated competition," with Li Auto rising 4.5%, alongside Geely Auto (1.7%), Great Wall Motor (1.3%), and BYD (2.5%). Battery stocks also gained, including Tianqi Lithium (2.7%), Ganfeng Lithium (4.0%), and Tianneng Power (10.7%). (alg)

Source: Trading Economics