FX.co ★ Hong Kong Stocks Extend Rally

The Hang Seng Index climbed 160 points, or 0.6%, to 26,550 on Thursday, extending the previous session’s gains as optimism over easing US-China tensions continued to bolster Hong Kong equities. Sentiment improved as investors priced in lower geopolitical risk and a possible stabilisation in US-China relations ahead of the Trump-Xi summit in Beijing.

The rally was in line with broader regional strength, with technology-related shares providing the main impetus. Tencent Holdings advanced 2.6%, leading blue-chip gains. Other notable movers included Meituan Class shares (up 3.9%), InnoScience Technology (3.4%), Kuaishou Technology (4.8%), Xiaomi Corporation (2.2%), and Semiconductor Manufacturing International Corporation (1.6%).

Even so, the market remains highly sensitive to incoming US economic data, shifts in Federal Reserve interest rate expectations, and any fresh signals from US-China diplomatic discussions, all of which could quickly alter momentum in either direction.