Hong Kong stocks resume rally as Alibaba, Tencent lead tech gainers

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This rally has more legs as many stocks are still trading below their three- and five-year averages, says John Choi of Daiwa Securities

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Pedestrians walk past a sign showing the Hang Seng Index on September 27, 2024. Photo: AFP

Jiaxing Li

Published: 10:53am, 4 Oct 2024Updated: 5:21pm, 4 Oct 2024

Hong Kong stocks advanced, overcoming a jittery start to trading, as Alibaba Group and Tencent Holdings led a tech rebound, while oil producers gained on worries about supply.

The market capped a third week of gains as investors bet there was more stimulus to come from Beijing.

The Hang Seng Index jumped 2.8 per cent to 22,736.87 on Friday after losing as much as 1.3 per cent in earlier trading. The Tech Index surged 5 per cent. Markets on the mainland are closed through October 7 for a holiday.

WeChat owner Tencent gained 2.4 per cent to HK$477.60. Alibaba gained 3.5 per cent to HK$113.90 and e-commerce peer JD.com surged 7.3 per cent to HK$182.80. Online travel agency Trip.com rallied 7 per cent to HK$543.

Drug maker Wuxi Biologics jumped 14.5 per cent to HK$21.45 and Wuxi Apptec surged 11.6 per cent to HK$67.10, amid media reports that they are looking at selling some operations after being targeted by a US national security bill.

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“Many investors wanted to see the effects of the policies to justify a long-term market turnaround,” John Choi, analyst at Daiwa Securities, wrote in a note to clients. This rally has more legs as many stocks are still trading below their three- and five-year averages, he said, adding that e-commerce companies will be among the key beneficiaries of further stimulus measures.