Hong Kong stocks rose around 272 points, or 1.1%, to 25,806 at the start of trading on Friday, after a slight correction in the previous session. This increase occurred across nearly all sectors, indicating improved buying sentiment among market participants.

Market sentiment improved after President Xi Jinping stated at the Central Economic Work Conference that 2025 would be a "truly extraordinary year" and that key economic targets would be achieved. The Chinese government also reiterated its commitment to implementing more proactive and coordinated macroeconomic policies to stimulate domestic demand, with fiscal policy remaining expansionary and monetary policy remaining moderately loose.

Globally, positive sentiment also stemmed from the S&P 500's new record close on Wall Street after the Fed cut interest rates for the third consecutive time. Hopes that the bull market could continue into 2026 spread to Asian markets, including Hong Kong, prompting investors to increase their positions in riskier assets.

Some of the standout stocks this session included Shenzhou International, which rose around 2.4%, Sands China, which rose 2.3%, Chow Tai Fook, which gained 1.7%, and China Hongqiao, which added around 1.3%. The movement of these stocks reflects fairly even buying support across the consumer, casino, and industrial sectors.

However, the Hong Kong market overall still has the potential to close the week down around 1%. Market participants remain concerned because the Fed may only cut interest rates once next year, and many analysts believe that significant support for China's property sector will only be felt in the second half of 2026. This means that today's rally represents a short-term sigh of relief, while medium-term concerns about growth and the property sector continue to loom. (asd)

Source: Newsmaker.id