Hong Kong stocks jump as post-election risk appetite lifts technology shares

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Hong Kong stocks jump after elections

Highlights

Hong Kong's Hang Seng Index surges 3.7% and Hang Seng Tech Index jumps 5.6% as Alibaba and Tencent climb over 8% and 7% after U.S. midterm elections reduce risk aversion.
Morningstar analysts highlight buying opportunities in quality tech names like Alibaba and Tencent, citing prior October declines of 5% for Hang Seng Index and 9% for CSI 300.
PetroChina falls 8% as oil stocks decline on weaker prices and expectations for U.S.-Iran peace following Democrats' midterm election win shift sector sentiment.

Technology and property stocks drive rebound

As reported by Pakistan Business Recorder, Hong Kong's benchmark Hang Seng Index closes 3.7% higher on Thursday, its biggest single-day gain since February 2025, while the Hang Seng Tech Index surges 5.6%. Index heavyweights Alibaba and Tencent gain more than 8% and 7%, respectively, as local markets track Wall Street's overnight rally after investors welcome lower uncertainty following the U.S. midterm elections.

Morningstar analysts say in an investment outlook on Thursday that China and Hong Kong remain relatively attractive after an October correction, when the Hang Seng Index dropped 5% and the CSI 300 declined 9%. Lorraine Tan, director of equity research for Asia at Morningstar, says the earlier pullback may create rebound opportunities in heavily sold quality names where AI concerns, rather than weaker fundamentals, drive the decline, adding that the firm remains bullish on Alibaba and Tencent.

The advance also receives support from property shares after Zhuhai Huafa Group secures funding from its local government, helping extend the market's recovery beyond technology counters.

Mainland market impact and sector rotation

In mainland equities, the blue-chip CSI300 Index closes 0.3% higher and the Shanghai Composite Index rises 0.1%. Investors favor solar power, semiconductors and new energy shares, while oil and optical communication stocks come under selling pressure.

Cliff Zhao, chief economist at CCB International, says China's domestic technology supply chain may become further differentiated after Democrats' sweeping midterm election win. He says hardware exporters that depend heavily on U.S. AI capital spending may face pressure, while GPUs, semiconductor equipment, advanced packaging and computing infrastructure may continue to benefit from demand for technological self-reliance.

State-backed oil producer PetroChina falls 8% as weaker oil prices weigh on the sector, with Democrats' victory raising hopes for an end to the U.S.-Iran war.

Our earlier analysis of the Nasdaq 100 rebound explained how renewed buying in tech shares was driven by positioning ahead of major earnings releases and expectations around upcoming Federal Reserve decisions. We also noted that, despite short-term resilience above key averages, mixed momentum signals and a defined consolidation band left the index vulnerable to choppy trading and potential pullbacks if support failed.

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