FX.co ★ Hang Seng Rises 0.9% at Finish

The Hang Seng Index advanced by 216 points, or 0.9%, closing at 25,634 on Monday, marking its second consecutive session of gains. This upward momentum was driven by the optimistic U.S. futures forecasts, suggesting a robust opening for Wall Street, bolstered by weaker labor data that increased expectations of a Federal Reserve rate cut later in the month. Additionally, investor confidence was further strengthened by positive developments in China’s economy, as its foreign exchange reserves reached their highest levels since December 2015 in August. This was complemented by reports of the central bank increasing its gold reserves. However, gains were capped due to soft Chinese trade data, which indicated sluggish growth in exports and imports, highlighting ongoing trade tensions and tepid domestic demand. Technology stocks rose by 1.2% following news that the U.S. may allow annual chip supply permits to China for companies like Samsung and Hynix. Further contributing to the market's positive performance were consumer and property stocks, which rallied after Shenzhen eased home purchase restrictions. Notably, Baidu's shares jumped by 9.5% following its announcement to issue senior unsecured notes denominated in Chinese yuan. Other significant movers included Horizon Robotics with a 6.9% rise, Citic Ltd. at 6.3%, and Bank of China Hong Kong up by 2.2%.