06.01.202602:19:27UTC+00Hong Kong Stocks Rally to Over 7-Week Top

Hong Kong stocks experienced a notable rise of 365 points, or 1.4%, reaching 26,714 on Tuesday morning, recovering from a subdued finish the previous day. This uptick was supported by a robust performance from Wall Street overnight, where financial stocks surged, propelling the Dow Jones to a record high. Additionally, energy shares saw gains following a successful U.S. military operation that led to the capture of Venezuelan leader Nicolas Maduro. The positive mood was further bolstered by sustained strength in mainland markets, with the Shanghai benchmark maintaining its position above the 4,000 mark after surpassing it on Monday, which marked its first trading day in 2026. The rally was driven by strong capital inflows, fueled by growing optimism within the AI sector. Hong Kong stocks achieved their highest level in more than seven weeks, although there was increasing caution as investors awaited China's Consumer Price Index (CPI) and Producer Price Index (PPI) data expected later this week. In November, annual inflation soared to a 21-month high of 0.7%, while producer prices recorded their 38th consecutive month of decline. Early notable performers included Kuaishou Tech with a 3.1% rise, Trip.com up by 2.3%, Meituan advancing 1.4%, and SMIC with a 2.0% increase.