Hang Seng Rebounds, China Data Lifts Market Sentiment
The Hang Seng Index surged 368 points, or 1.45%, to 25,834 at the close on Monday (March 16), halting the previous three-session decline amid broad-based gains across sectors. Sentiment improved after China's combined January-February 2026 activity data beat estimates, with industrial production, retail sales, and fixed-asset investment all providing positive surprises.
Additional support came from strengthening US stock futures ahead of this week's Federal Reserve policy meeting, which helped improve regional risk appetite. However, the Hang Seng's gains were tempered by a third consecutive day of weakness in mainland Chinese markets, amid speculation that a planned meeting between Donald Trump and Xi Jinping could be delayed as Washington pressures Beijing to help reopen the Strait of Hormuz.
China's statistics bureau also cautioned that external pressures, geopolitical risks, and domestic structural challenges remain at high levels. This means that stronger data for the start of the year provides a short-term cushion but has not completely allayed concerns about the growth outlook.
At the stock level, the rally was led by Knowledge Atlas, which surged 14.0%, followed by Mixue Group (up 6.4%), Akeso Inc. (6.0%), Xiaomi Corp. (5.3%), Orient Overseas (4.2%), and Meituan (3.0%). The gains in these stocks confirm that the index's recovery is supported by a combination of improving macro sentiment and selective buying interest in large-cap names.
Source: Newsmaker.id
