Hong Kong Hang Seng Rises More Than 2% Amid General Asia-Pacific Upswing

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by Tolu Ajiboye · 3 min read
Hong Kong Hang Seng Rises More Than 2% Amid General Asia-Pacific Upswing
Photo: Depositphotos

The Hang Seng index in Hong Kong advanced on the back of Chinese tech stock increases. There were also rallies in the US and the APAC region.

Asia-Pacific shares traded higher to begin the week, with the Hong Kong Hang Seng index rising over 2% amid the upswing. This rise in Asia-Pacific shares comes as investors continue to pay close attention to inflation and recession fears.

The 2.41% increase in the Hang Seng in Hong Kong was enough to thrust the index to the forefront of all Asia-Pacific gains so far. This increment came during the final hour of trading after Hang Seng traded more than 3% higher in the session.

The Hang Seng tech index also shot up around 4.63%, with the shares of regional e-commerce giant Alibaba (NYSE: BABA) at 4.21%. In addition, fellow internet and tech company Meituan also saw its stock rise by 3.48% in the same period.

Beyond Hong Kong Hang Seng, Other Gains Seen Across Asia-Pacific Region

Besides the Hang Seng in Hong Kong, mainland Chinese markets also saw gains. For instance, the Shanghai Composite rose 0.88% to close at 3,379.19, while the Shenzhen Composite advanced 1.1% to 12,825.57.

In other parts of the Asia-Pacific region, the Japanese Nikkei 225 climbed 1.43% to close at 26,871.27. The Tokyo Stock Price Index (TOPIX) also closed out at 1,887.42 after rising 1.11%. In neighboring South Korea, the Kospi inched forward 1.49% to end the session at 2,401.92. Furthermore, the Kosdaq advanced 2.71% to 770.6.

In Australia, the S&P/ASX 200 gained approximately 2% to 6,706.

All Asia-Pacific gains reflected in leading American financial analyzer MSCI’s broadest index, extending it by 1.72%.

There are a few upcoming events that may considerably sway the direction of these indexes. For instance, China and Japan appear set to report Purchasing Managers’ Index data later in the week. In addition, Hong Kong looks to commemorate the 25th anniversary of its British handover. According to state media Xinhua, China’s President Xi Jinping will attend the event.

US Stocks & Futures

In the US stocks rallied on Friday to upend previous losing streaks, with the Dow alone registering a massive 800+ points. This development represents the major US index’s first weekly advance since May. Speaking on the Dow’s Friday 2.68% increase and overall US stock index rise, JPMorgan’s Kerry Craig said:

“It just highlights the fact that markets are going to be very volatile until we do pass that peak in inflation and the outlook for central banks being as hawkish as they are.”

In addition, Craig, who serves as the global market strategist at JPMorgan Asset Management, also noted the likelihood of market choppiness. This is especially so as several central banks in developed countries embark on a fresh cycle for rate increments. Craig concluded:

“It’s when you have clarity on that path forward, then you start to refocus on the fundamentals.”

After Friday’s US stock comeback, futures registered marginal increases on Sunday. For instance, the S&P 500 futures gained 0.72%, while Nasdaq 100 progressed 0.92%. Lastly, the Dow also managed a 0.55% climb for the same period.

Market News, News, Stocks
Tolu Ajiboye
Author Tolu Ajiboye

Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge. When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.

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