FX.co ★ Hang Seng Climbs 1% at Finish

On Monday, the Hang Seng Index saw a rise of 252 points, marking a 1% increase to close at 26,158. This upturn came after a three-day losing streak and was fueled by widespread sector gains. The positive sentiment was largely driven by the U.S.-China trade agreement, which included a reduction in U.S. tariffs and a temporary halt to Beijing's new export restrictions on rare earth minerals and magnets. Additionally, the U.S. plans to waive port fees for vessels linked to China starting next week. Contributing to the rally, recent local data showed promising economic indicators: Hong Kong's economy expanded by 3.8% year-on-year in the third quarter—its fastest pace since late 2023—and retail sales surged by 4.8% in September, marking the highest increase in almost two years. However, gains were moderated by private survey results indicating a slowdown in China's factory activity growth from a six-month peak in October, following the Golden Week holiday. Within the financial sector, stocks rose approximately 2%, bolstered by significant moves from AIA Group, which increased by 5.3%, Industrial and Commercial Bank of China at 2.5%, and Bank of China Hong Kong at 1%. The property sector also saw a 1.4% rise, driven by Sun Hung Kai Properties with a 2.1% gain and CK Asset Holdings with a 1.9% increase.