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Source: Newsmaker.id
The Hang Seng Index jumped 3.7%, or 877 points, to reach 24,797 on Thursday (Nov 5)—marking its second consecutive session of gains and hitting a five-week high. This surge, the largest since May 2025, was driven by an improvement in global risk appetite following the Democratic Party's performance in the U.S. midterm elections.
Positive sentiment was further bolstered as Brent crude prices plummeted by more than 8%, falling below US$95 per barrel. The decline in energy costs eased inflationary concerns, while a weaker U.S. dollar and falling Treasury yields made riskier assets more attractive to investors once again.
A rebound on Wall Street served as an additional catalyst; the S&P 500 climbed 1.6% on Wednesday, marking its strongest daily gain in three months. This improved sentiment in the U.S. market rippled across Asia—including Hong Kong—particularly benefiting technology stocks and companies sensitive to global liquidity conditions.
Domestically, sentiment was strengthened by Beijing’s efforts to bolster the stock market. Government-backed funds injected approximately US$11.5 billion into nine exchange-traded funds (ETFs), while applications for PBoC-supported loans—earmarked for share buyback programs—have surpassed CNY 200 billion.
Blue-chip stocks saw significant gains, with Tencent rising 4.9%, Xiaomi 4%, Meituan 5.6%, and Alibaba 2.6%. These advances suggest that investors are returning to technology and consumer-sector stocks, following a period where the Hong Kong market had faced pressure due to global concerns.
Newsmaker Analysis: The current rally in the Hang Seng is underpinned by a combination of global risk appetite, falling oil prices, a weaker dollar, and policy support from Beijing. Should energy prices remain low and Wall Street sentiment stay positive, there remains further room for Hong Kong stocks to climb. However, investors still need to keep a close eye on the sustainability of China’s stimulus and whether the recovery in tech stocks can hold up following this sharp rally. (arl)
Source: Newsmaker.id