Hong Kong Stocks Rebound, Eye Weekly Gains

Hong Kong shares jumped 240 points or near 1.0%, to 24,734 in early trade on Friday, snapping two-day losses after the S&P 500 and Nasdaq closed at record highs overnight amid strong U.S. retail sales, upbeat earnings, and continued AI optimism. The Hang Seng hit a four-month top and is on track for a second straight weekly gain, up 2.5% so far. Sentiment was also boosted after U.S. President Trump softened his rhetoric toward China, boosting hopes for a trade deal. All sectors advanced, led by tech, consumer, and financials, as gains in mainland markets encouraged fresh buying. Early top performers included Hansoh Pharma (3.2%), Nongfu Spring (3.1%), China Hongqiao Group (2.9%), and Zhaojin Mining (1.7%). However, upside was capped by data showing Hong Kong’s jobless rate held at a two-year high of 3.5% for the three months to June. Caution also grew ahead of China’s July LPR fixing next week, after the PBoC held rates at record lows in May to support the economy amid tariff risks.