The Hang Seng Index extended its gains from Wednesday in early trading, buoyed by housing and tech stocks.
Investors remain focused on trade developments ahead of upcoming inflation, trade data (due June 9), and any potential stimulus from Beijing. These elements could determine whether the index slides toward 23,000 or breaks above 24,000.
Hong Kong Stocks Eye Three-Day Winning Streak
While US equity markets posted mixed performances on June 4, with the Nasdaq Composite Index rising 0.32% and the Dow falling 0.22%, investors remained hopeful for easing trade tensions and stimulus, fueling risk sentiment. The Hang Seng Index rose 0.81% to 23,846 in early trading on June 5. Mainland China’s markets posted modest gains, with the CSI 300 and Shanghai Composite Index advancing 0.02% and 0.04%, respectively.
Housing and Tech Stocks Advance
The Hang Seng Mainland Properties Index rallied 2.54% as Henderson Land (0012) surged 5.38%, while New World Development (HK0017) gained 1.32% on Fed rate cut bets. Overnight US services sector and labor market data may pressure the Fed into cutting rates.
The Hang Seng Tech Index climbed 1.2%, with Baidu (09888) and Alibaba (09988) advancing 0.90% and 2.88%, respectively.
Trade Headlines and Services PMI
Reports of the US administration planning to curb ethane exports to China, which are needed for plastics manufacturing, failed to spook investors. The move followed the US accusing China of breaching the trade war truce for restricting rare earth mineral exports.