Hong Kong equities climbed 97 points, or 0.4%, to 26,690 in early trading on Wednesday, rebounding from a sharp loss in the previous session. The advance followed a strong overnight close on Wall Street ahead of President Trump’s State of the Union address. Sentiment was further supported by continued gains in mainland Chinese stocks amid expectations that a potential U.S. tariff reset could benefit China.
In monetary policy, the PBoC on Tuesday left its loan prime rates at record lows for a ninth consecutive month to shore up economic growth. However, upside in the local market was limited as investors remained cautious ahead of key Hong Kong data releases, including final Q4 figures and January inflation due later in the day, as well as trade data scheduled for Friday.
Geopolitical risk also weighed on sentiment after fresh tensions emerged between Beijing and Tokyo, with China banning the sale of dual-use items to 20 Japanese firms over alleged military ties.
Most sectors in Hong Kong traded higher, led by property, consumer, and technology names. Notable gainers included Anta Sports (up 4.5%), China Resources Land (up 4.0%), China Overseas Land (up 3.0%), and Zijin Mining Group (up 2.0%).