Hong Kong stocks ended the week in positive territory after three straight sessions of losses, as investors welcomed policy stability after both the People's Bank of China and the city's de facto central bank held key interest rates steady.

The Hang Seng Index climbed 292.74 points, or 1.3%, to close Friday's session at 23,530.48, while the Hang Seng China Enterprises Index rose 116.13 points, or 1.4%, to 8,527.07.

The Hong Kong Monetary Authority kept the base rate unchanged at 4.75%, mirroring the US Federal Reserve's decision to maintain its rate target at between 4.25% to 4.5%.

As Hong Kong's currency is pegged to a narrow trading band between HK$7.75 and HK$7.85 per US dollar, the linked exchange system means the city raises or cuts borrowing costs in lockstep with rate changes by the Fed.

China left the one-year loan prime rate unchanged at 3% this month, and the five-year rate at 3.5%, according to the central bank.

On the geopolitical front, US President Donald Trump will decide within two weeks whether to strike Iran, his spokeswoman said, and there was a "substantial chance" of a negotiated settlement as Israel carried out strikes on dozens of military targets in Iran overnight.

In corporate news, Pop Mart International, the maker of toys and figures including the wildly popular Labubu, tumbled about 4% after a Chinese state media commentary urged tighter oversight of blind-box toys and trading cards.

Bloks Group, which sells similar products such as assembly character toys, fell as much as 10%.

Source : MT Newswires