FX.co ★ Hong Kong Stocks Edge Higher After Trade Data

In early trading on Tuesday, Hong Kong's equity market saw a modest rise of 64 points, or 0.2%, bringing the index to 25,703. This movement signals an attempt to recover from the previous session's losses, with tech and consumer stocks notably driving the gains. Despite this uptick, overall market sentiment remains cautious as investors digest November's trade data. The figures reveal that both exports and imports in Hong Kong experienced their swiftest growth in four years, even though the trade deficit has expanded. Investors are also keenly awaiting key U.S. economic announcements, particularly the release of the Federal Reserve's December meeting minutes later today, which may provide insights into the anticipated policy easing pace in 2026. Additionally, the forthcoming U.S. weekly jobless claims are on investors' watchlist. Among the notable early gainers, Sunny Optical Technology reported a 2.0% increase, while SMIC advanced by 1.7%, Geely Automobile by 1.4%, and Xiaomi Corp. by 1.2%. For the year as a whole, Hong Kong stocks are poised to achieve a significant gain of approximately 28%. This positive trend continues from 2024, buoyed by ample liquidity in China, a growing risk appetite due to eased Sino-U.S. trade tensions, and a robust comeback in the city's IPO market.