Hang Seng Index Closes Strong; Alibaba Soars
The Hong Kong stock market closed higher in Monday's trading (August 3) as investors welcomed signs of easing tensions in the Middle East. The Hang Seng Index rose 0.5%, or 124.97 points, to reach 26,009.40, while the Hang Seng China Enterprises Index gained 0.5% to 8,652.15.
Market sentiment improved after oil prices fell by more than 4%. This decline followed US President Donald Trump's statement that negotiations with Iran would take place on Monday, raising hopes for a deal and the reopening of the Strait of Hormuz.
Investors are also closely monitoring the outlook for artificial intelligence (AI) spending following the earnings reports of major US technology companies. Interest in AI stocks remains robust, although high valuations are prompting market participants to exercise greater caution.
On the economic front, Hong Kong Financial Secretary Paul Chan reported that the economy grew by 5.1% in the first half of the year, exceeding forecasts. Demand for AI products, the resilience of the financial services sector, and a rising number of tourists are expected to support growth in the second half.
Alibaba shares were a key driver, surging 7%. The rally followed the company's launch of Qwen3.8-Max, its most advanced AI model. Newsmaker Analysis: The Hang Seng has the potential to maintain its momentum as long as geopolitical sentiment improves and tech stocks remain strong, although profit-taking could emerge following the rapid gains.
Source: Newsmaker.id
