Hong Kong's equities surged 283 points, or 1.3%, to 22,140 in early trading on Thursday, marking the second consecutive day of gains and reaching a four-month high. Most sectors advanced, buoyed by optimism over a potential peace deal between Ukraine and Russia following phone calls between US President Trump, Russian President Putin, and Ukrainian President Zelenskiy.

Hang Seng Index up, buoyed by investor optimism over a potential resolution to the Russia-Ukraine conflict. After opening 100 points higher at 21,958, the benchmark index extended its gains, climbing as much as 228 points to reach 22,086, a level not seen in over four months. By mid-morning, the index stood at 22,016, up 158 points or 0.72%. The China Enterprises Index rose 51 points, or 0.64%, to 8,109, while the Technology Index gained 68 points, or 1.28%, to 5,349. Turnover on the main board reached HK$35.1 billion.
Technology stocks were mixed, with Alibaba leading the gains, up 2.9%, and Tencent rising 0.3%. Meituan advanced 1.8%, while Xiaomi and JD.com fell 1% and 1.9%, respectively. Kuaishou outperformed with a 3.2% increase. Financial stocks largely traded higher, with AIA Group surging 4.2%, HSBC Holdings gaining 0.5%, and Ping An Insurance up 0.2%. Hong Kong Exchanges and Clearing, however, dipped 0.6%. Sunny Optical Technology rose 1.5% after issuing a positive earnings update.

On Wednesday, the Hang Seng Index had surged over 500 points, driven by a rally in technology and property stocks. This contrasted with Wall Street, where the Dow Jones Industrial Average fell 224 points after U.S. inflation data for January came in higher than expected. Federal Reserve Chair Jerome Powell's hawkish remarks on future interest rate hikes further weighed on U.S. equities.

The Hang Seng Index (HSI) is a market-capitalisation-weighted stock market index in Hong Kong, adjusted for free float. It tracks and records daily changes in the largest companies listed on the Hong Kong Stock Exchange and serves as the primary indicator of overall market performance in Hong Kong. These 82 constituent companies represent about 58% of the capitalisation of the Hong Kong Stock Exchange.

Elsewhere in Asia, Japanese stocks gained momentum, with the Nikkei 225 climbing over 400 points in early trading to reclaim the 39,000 mark. Commodity markets reflected mixed movements during the Asian session, with New York crude oil futures down 0.24% and gold futures edging up 0.12%. In currency trading, the U.S. dollar strengthened slightly against the yen but retreated against the euro and the pound.

Source: Dimsumdaily.HK