FX.co ★ Hong Kong Equities Track Wall Street Gains

Hong Kong stocks advanced by 259 points, or 1.0%, reaching 25,977 in early trading on Tuesday, building on the gains from the previous session. This upswing was spurred by an overnight rally on Wall Street. Investor sentiment improved on growing anticipation that the Federal Reserve might reduce interest rates soon, while concerns about overstretched valuations in the AI sector eased. The market saw broad sector improvements, echoing a recovery in mainland markets, buoyed by the People's Bank of China's (PBoC) plan to execute a CNY 1 trillion Medium-term Lending Facility (MLF) operation today, which is expected to lead to a net liquidity injection of approximately CNY 100 billion. Market participants are also on the lookout for possible policy indications from China's upcoming Central Economic Work Conference next month. In the corporate sphere, Syngenta, a Swiss company under Chinese ownership, reportedly aims to initiate an IPO in Hong Kong. However, the market's upward momentum was tempered by caution ahead of the forthcoming release of Hong Kong's October trade data and China's industrial profit figures, expected later in the week. The rally was led by consumer and tech stocks, which increased by about 1.7% to 2%. Xiaomi saw a significant rise of 5.0%, followed by Kuaishou with a gain of 3.5%, Prada also up 3.5%, and China Hongqiao rising 3.4%.