The Economic Intelligence Network (5th) reported that the outcome of the US midterm elections has been decided, with the Democratic Party successfully flipping control of both the House of Representatives and the Senate. Markets anticipate that President Trump will find it harder to take aggressive actions under congressional checks and balances, easing US-Iran tensions, causing oil prices to plunge, bond yields to retreat, and leading major technology stocks to surge, driving all three major US stock indices higher, especially the Dow Jones, which soared 1,569 points or 3%, while the semiconductor sector came under pressure. The Hang Seng Index opened at 24,316, up 397 points or 1.7%, with main board turnover of HK$4.391 billion. The Hang Seng China Enterprises Index stood at 8,174, up 116 points or 1.4%. The Hang Seng Tech Index stood at 3,992, up 56 points or 1.4%.
Tech and internet stocks led the gains. Alibaba (09988), whose Qwen AI has been integrated into Apple's mainland China AI functionality testing, rose 2.58% to HK$103.2, Tencent (00700) gained 3.04% to HK$413.8, marking its fifth consecutive day of gains with a cumulative rise of 9.59%, Baidu (09888) advanced 1.89% to HK$78, and Meituan (03690) climbed 3.06% to HK$77.5.
Major financial stocks also rose: HSBC (00005) gained 2.86% to HK$139.5, extending its three-day winning streak with a cumulative rise of 4.95%; AIA (01299) rose 1.36% to HK$78; Standard Chartered (02888) gained 3.37% to HK$226.8.
With expectations that Trump's trade policies will be constrained, export-oriented stocks rallied: Techtronic Industries (00669) surged 10% to HK$151.8, extending its three-day rally with a cumulative gain of 14.65%.
Several Democratic governors previously opposed the expansion of large-scale AI data centers as a core campaign issue, potentially affecting US AI business development, putting pressure on global AI hardware stocks. Hua Hong Semiconductor (01347) opened 5.46% lower at HK$64.95, Lenovo Group (00992) fell 4.99% to HK$19.8, SMIC (00981) dropped 2.97% to HK$45.06, Kingboard Laminate (01888) declined 6.48% to HK$34.9, Yangtze Optical Fibre & Cable (06869) fell 5.46% to HK$103.8, and Zhongji Xuzhuang (03308) plunged 7.5% to HK$617.
Oil prices dropped: PetroChina (00857) opened 5.46% lower at HK$10.22, CNOOC (00883) fell 2.52% to HK$23.18, and Sinopec (00386) declined 1.75% to HK$4.77. (ey)
Tech and internet stocks led the gains. Alibaba (09988), whose Qwen AI has been integrated into Apple's mainland China AI functionality testing, rose 2.58% to HK$103.2, Tencent (00700) gained 3.04% to HK$413.8, marking its fifth consecutive day of gains with a cumulative rise of 9.59%, Baidu (09888) advanced 1.89% to HK$78, and Meituan (03690) climbed 3.06% to HK$77.5.
Major financial stocks also rose: HSBC (00005) gained 2.86% to HK$139.5, extending its three-day winning streak with a cumulative rise of 4.95%; AIA (01299) rose 1.36% to HK$78; Standard Chartered (02888) gained 3.37% to HK$226.8.
With expectations that Trump's trade policies will be constrained, export-oriented stocks rallied: Techtronic Industries (00669) surged 10% to HK$151.8, extending its three-day rally with a cumulative gain of 14.65%.
Several Democratic governors previously opposed the expansion of large-scale AI data centers as a core campaign issue, potentially affecting US AI business development, putting pressure on global AI hardware stocks. Hua Hong Semiconductor (01347) opened 5.46% lower at HK$64.95, Lenovo Group (00992) fell 4.99% to HK$19.8, SMIC (00981) dropped 2.97% to HK$45.06, Kingboard Laminate (01888) declined 6.48% to HK$34.9, Yangtze Optical Fibre & Cable (06869) fell 5.46% to HK$103.8, and Zhongji Xuzhuang (03308) plunged 7.5% to HK$617.
Oil prices dropped: PetroChina (00857) opened 5.46% lower at HK$10.22, CNOOC (00883) fell 2.52% to HK$23.18, and Sinopec (00386) declined 1.75% to HK$4.77. (ey)
