FX.co ★ Hong Kong Stocks Rise for 4th Session

Hong Kong's stock market saw an uptick on Wednesday morning, with shares climbing 71 points or 0.3% to 26,917, marking the fourth consecutive session of gains primarily driven by consumer stocks. Investor confidence continues to be bolstered by advancements in Artificial Intelligence in China, spurred by increasing capital expenditures, enhancements in model performance, and favorable policy indications. The city's IPO market is anticipated to maintain its robust status into 2026, continuing its global leadership from the previous year. However, overall sentiment was dampened due to a decline in U.S. futures, which followed Wall Street's losses overnight. This came in the wake of December's inflation data, which did not change expectations regarding the Federal Reserve's pause in rate cuts. Additionally, tensions have arisen as China has threatened to retaliate against former President Trump's administration following the U.S.'s decision to impose a 25% tariff on nations trading with Iran. Market caution is also prevailing ahead of China’s December trade data, with expectations of weaker export and import figures. Noteworthy early performers included Nongfu Spring, which rose by 6.4%, Kuaishou Technology at 4.3%, Hansoh Pharmaceutical rising by 3.2%, and Chow Tai Fook increasing by 1.9%.