Hong Kong stocks rise on Trump’s China optimism and Wall Street rally

Hang Seng Index ends in positive territory for a second week, led by Sunny Optical, Xiaomi and Trip.com

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An overnight rally on Wall Street spurred Hong Kong stocks higher on Friday. Photo: Reuters

Published: 11:00am, 24 Jan 2025Updated: 4:47pm, 24 Jan 2025

Hong Kong stocks rose, tracking a rally on Wall Street that sent a benchmark index to a record high, and the prospect of warmer US-China relations following US President Donald Trump’s speech to the World Economic Forum further aided sentiment.

The Hang Seng Index jumped 1.9 per cent to 20,066.19 on Friday, ending higher for a second week with gains of 1.3 per cent for the five-day period. The Hang Seng Tech Index surged 3.2 per cent. On the mainland, the CSI 300 Index was up 0.8 per cent, while the Shanghai Composite Index increased 0.7 per cent.

Apple supplier Sunny Optical led the pacers, rising 8 per cent to HK$73.00. Phone maker Xiaomi jumped 6.8 per cent to HK$36.85, while travel platform Trip.com advanced 5.3 per cent to HK$541.00.

Trump voiced optimism about relations with China, describing it as “very good”, while warning of tariffs on companies that do not manufacture in the US. He also called for lower interest rates and cheaper oil prices. The comments sent the S&P 500 Index 0.5 per cent higher to an all-time high, with the gauge crossing the 6,100 level.

“Since Donald Trump’s inauguration, the Hong Kong market has been in a zigzag pattern in response to his comments,” said Louis Wong, the executive director of Phillip Capital Management.

Wong said Trump’s comments on interest rates, which he wants the Federal reserve to cut, would work in favour of Hong Kong stocks, but his comments regarding tariffs on China could lead to uncertainty.