Hong Kong stocks open higher; Hang Seng Index up 0.74%, Hang Seng Tech Index up 0.97%.

Hong Kong stocks open higher; Hang Seng Index up 0.74%, Hang Seng Tech Index up 0.97%.

Hong Kong's stock market started the week on a positive note, with the Hang Seng Index (HSI) opening higher by 0.74%, reaching 23,414.86 points. The Hang Seng Tech Index also climbed, gaining 0.97% to 10,635.14 points. This uptick follows a week of mixed market performance, with the HSI fluctuating between positive and negative finishes [1].

The market's optimism can be attributed to several factors. First, there is a sense of optimism surrounding potential trade talks between the United States and China. Traders are hopeful that these discussions could lead to a resolution of ongoing trade disputes, which have been a significant source of uncertainty [2]. Additionally, the Chinese Services PMI for June is expected to be released soon, which could provide further insight into the economic health of China and potentially boost market sentiment [2].

Among the top performers were technology and electric vehicle (EV) stocks, which led the Hang Seng gains. BYD surged by 2.75%, while Tencent rallied by 1.39% [2]. These gains are indicative of the broader trend of investors favoring growth sectors, particularly in the technology and EV sectors, which are seen as promising long-term investments.

The opening of the market was also influenced by the recent developments in the U.S. market. Although the major averages on Wall Street finished mixed and little changed on Friday, the mild recovery later in the day was driven by bargain hunters, who took advantage of the early selling pressure caused by President Donald Trump's accusations against China [1].

In terms of economic indicators, the release of the Chinese Services PMI for June is expected to be a key driver for the Hang Seng Index. Traders are watching this report closely, as it could provide a potential breakout driver above the 24,000 level [2].

References:
[1] https://www.nasdaq.com/articles/hong-kong-bourse-may-extend-fridays-losses-0
[2] https://www.fxempire.com/forecasts/article/hang-seng-index-news-tech-and-ev-rally-lifts-index-on-trade-talk-optimism-1523621