Hong Kong's stock market is gaining momentum, closing higher for the sixth consecutive session. The Hang Seng Index has risen nearly 930 points, or 3.7 percent, over the past week. As of Friday, the index is sitting just over 25,880 points, with expectations of a positive start on Monday.
On Friday, the index climbed 0.10 percent, ending the day at 25,884.43. The daily trading range was between 25,622.92 and 25,917.20. Performance across financial shares, property stocks, and technology firms was mixed, yet the overall trend remained upward.
A strong performance from Wall Street provided support. The Nasdaq rose 1.00 percent, the S&P 500 increased 0.70 percent, and the Dow gained 0.53 percent on Friday. For the week, the Nasdaq climbed 1.5 percent, while the S&P 500 and the Dow each gained 1 percent.
The U.S. market surge was driven by Amazon, which saw a sharp rise in shares after the company posted stronger-than-expected A2 revenue and cloud growth. This momentum helped improve overall investor confidence.
Crude oil prices rose 1.77 percent to $85.07 per barrel on Friday following Iranian military strikes against U.S. installations in Bahrain and Kuwait. West Texas Intermediate crude for September delivery gained $1.48, pushing the 10-year U.S. Treasury yield to its highest since early 2025.
Looking forward, investors are assessing how recent events may influence Monday's market open. Asian markets are expected to fall somewhere between the cautious European outlook and the optimistic U.S. trend.
The Hong Kong stock market on Tuesday ended the seven-day winning streak in which it had advanced almost 1,050 points or 4.2 percent. The Hang Seng Index now sits just above the 25,850-point plateau although it figures to see renewed support on Wednesday. The global forecast for the Asian markets is upbeat on falling crude oil prices and optimism for an end to hostilities in the Middle East. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.
The Hang Seng finished modestly lower on Tuesday following losses among the financial shares, technology stocks and energy companies. For the day, the index sank 156.48 points or 0.60 percent to finish at 25,852.92 after trading between 25,768.04 and 26,187.57.
The lead from Wall Street is strong as the major averages opened solidly higher and continued to accelerate throughout the day, ending at fresh record closing highs. The Dow rallied 907.47 points or 1.71 percent to finish at 54,085.88, while the NASDAQ soared 671.10 points or 2.59 percent to end at 26,584.99 and the S&P 500 jumped 136.02 points or 1.79 percent to close at 7,736.52.
The continued strength on Wall Street comes amid an extended nosedive by the price of crude oil, with U.S. crude oil futures plummeting after Treasury Secretary Scott Bessent claimed the U.S. and Iran could reach a deal to reopen the Strait of Hormuz within the next couple days. Later, Qatar confirmed that mediatory efforts to secure U.S.-Iran deal are progressing well. West Texas Intermediate crude for September delivery was down $4.66 or 5.80 percent at $75.68 per barrel.
Tech stocks have led the rally amid a positive reaction to earnings news from enterprise software giant Palantir (PLTR); shares of the company surged more than 25 percent as it reported better than expected second quarter results and raised its full-year guidance. In economic news, the Commerce Department said the U.S. trade deficit narrowed roughly in line with estimates in June. The trade deficit shrank to $73.3 billion in June from $77.6 billion in May. Economists had expected the trade deficit to decrease to $73.0 billion.