Hong Kong Stocks Surge Amid AI Optimism and Alibaba's Price Hike
Hong Kong stocks reached their highest point in over four years as tech shares soared. The Hang Seng index rose 1.61%, driven by optimism around AI advancements and JPMorgan's target price increase for Alibaba. Chinese chipmaker SMIC and Kuaishou also saw significant gains amidst a positive market sentiment.
In a remarkable market rally, Hong Kong stocks soared to their highest level in over four years during early October trading, bolstered by significant growth in the technology sector. The Hang Seng index closed up by 1.61%, reflecting robust investor confidence driven by advancements in artificial intelligence (AI) and a strategic boost in Alibaba's target share price by JPMorgan.
The technology sector saw notable performances, with the Hang Seng Tech index climbing 3.4%. Alibaba, a key index component, rose by 3.5% after receiving an upgraded target price of HK$240, up from HK$165. Likewise, leading Chinese chipmaker SMIC surged 12.7% while short video apps operator Kuaishou increased by 8.6%, underscoring a widespread positive sentiment across mega-cap Chinese tech companies.
Meanwhile, OpenAI's launch of the AI video-generating app Sora contributed to the buoyant mood in the AI sector. Additionally, biotech and pharmaceutical companies outperformed, with Hang Seng Healthcare rising 2.4%. The market movement came as trading resumed after a holiday, coinciding with data revealing a record number of railway trips in China during the National Day holiday.
(With inputs from agencies.)
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