The Hang Seng Index opened strong this morning, climbing 0.5 percent to 17,290.08, marking a five-month high. This positive sentiment was mirrored in the Hang Seng Tech Index, which gained 0.2 percent. However, the Shanghai Composite Index faced a slight dip of 0.1 percent. This overall bullish trend in the Hong Kong market is attributed to an increase in global fund allocations to China, as investors reduce their underweighting and increase their positions. HSBC Holdings noted that global emerging markets funds have shifted to a neutral stance on mainland China, while Asian funds’ exposure to the market has reached a seven-month high. Notably, mainland investors have been actively investing in Hong Kong stocks through the stock connect program, snapping up approximately HK$1.2 billion worth of shares. On the other hand, major Asian markets experienced losses, primarily driven by a sell-off in the tech sector following a disappointing outlook from Meta Platforms, the parent company of Facebook. Japan’s Nikkei 225 dropped by 1.4 percent, while South Korea’s Kospi declined by 1.1 percent. Australia’s S&P/ASX 200 managed to limit its losses to less than 0.1 percent.
Hang Seng Index Surges to 5-Month High Amid Positive Market Sentiments
