FX.co ★ Hong Kong Stocks Hit 8-week High

The Hang Seng Index rose 1.5%, or 385 points, to 25,692 on Wednesday, its highest level in eight weeks, as technology stocks extended their rally. Risk appetite improved as worries about stretched AI-related valuations subsided, while investors positioned themselves ahead of the US Federal Reserve’s policy decision and upcoming earnings reports from major US technology firms. Sentiment was further buoyed by reports that fast-fashion giant Shein is targeting a Hong Kong IPO at a valuation of US$40 billion to US$50 billion, reinforcing confidence in the city’s capital markets.

At the same time, renewed geopolitical tensions in the Middle East kept oil prices elevated, stoking concerns about inflation and the future path of interest rates. Even so, bargain hunting lent support to regional equities, with technology counters leading the gains. Among the notable movers were Xiaomi (up 6.65%), Li Auto (up 10.1%), Tencent (up 1.6%), Z.AI Co. (up 1.2%), and Meituan (up 2.0%).