HK stocks rebound as US trade uncertainties spur diversification

Hong Kong stocks rebounded nearly 1 percent as investors sought risk diversification amid the worrying US economic data and the impact of tariffs.

The market benchmark Hang Seng Index gained 225 points or 0.92 percent, closing at 24,733 on Monday and ending a four-day losing streak from the week before.

The full-day main board turnover reached nearly HK$234.7 billion, as the Southbound Connect linking mainland investors with the Hong Kong market recorded a net sale of HK$18.09 billion.

The Hang Seng Tech Index climbed 1.55 percent to 5,481 points. Xiaomi (1810) and Tencent (0700) rose over 2 percent, while Alibaba (9988) edged 0.6 percent lower.

Semiconductor stocks led sector gains, with SMIC (0981) climbing nearly 3 percent and Hua Hong Semiconductor (1347) surging nearly 9 percent – the top performer on the Tech Index.

Mainland bank stocks also advanced, as Agricultural Bank of China (1288) gained nearly 3 percent, while China Merchants Bank (3968) and ICBC (1398) both rose over 1 percent.

Conversely, pharmaceutical and oil stocks declined. WuXi AppTec (2359) dropped 1.4 percent and CSPC Pharmaceutical (1093) fell by over 2 percent, while PetroChina (0857) and Sinopec (0386) fell more than 0.5 percent.

Among blue-chips, Xinyi Glass (0868) slid nearly 4 percent, marking the session's steepest decline.

In mainland China, the Shanghai Composite Index ended 0.66 percent higher at 3,583 and the Shenzhen Component Index reversed morning losses and rose 0.46 percent to 11,041.

STAFF REPORTER