Hong Kong shares moved higher on Tuesday, with pharmaceutical and technology stocks leading gains as stronger global market sentiment offset continued weakness among property developers.
The Hang Seng Index was up 0.8% at 24,240 by the latest reported level, while the Hang Seng China Enterprises Index gained 0.82%. The Hang Seng Tech Index rose 0.87%, while the Hang Seng Biotech Index advanced by almost 3%. The gains followed a stronger session on Wall Street, where technology stocks benefited from continued optimism surrounding artificial intelligence and corporate deal activity.
The technology-led move provides a further indication that investor attention remains concentrated on companies with exposure to artificial intelligence, technology and biotechnology. WuXi Biologics and Sino Biopharmaceutical were among the strongest performers within the Hang Seng Index, rising 4.2% and 4.1% respectively. Sunny Optical, Baidu, Kuaishou and Alibaba also recorded gains of between 2.8% and 3.7%.
Other technology-related names also moved higher. Z.AI Co. gained 7.8%, while Tencent rose 1%. Genscript Biotech advanced 5.5%, MiniMax increased 4.3% and Wuxi Biologics gained 3.3%.
The broader market was also supported by lower oil prices. Brent crude was trading around US$100 a barrel after falling 1.9% in the previous session, with increased Middle East exports and a commitment from G7 nations to boost supplies helping to ease some pressure on energy markets.
The move in Hong Kong followed a positive session in US markets, where the Nasdaq reached a record close. The technology rally has provided support for Asian markets, although higher US Treasury yields remain a consideration for equity valuations. Treasury yields were hovering around 5.31%, keeping interest rate and funding conditions firmly in focus.
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