Hong Kong Stocks Rally Over 2% Led by Tech Ahead of National Day Holiday

Hong Kong stocks have shown mixed performance ahead of the National Day holiday, with indexes experiencing both gains and slight declines. The Hang Seng Index hovered around 26,614 but edged lower due to profit-taking ahead of the holiday, while the Hang Seng Tech Index and other major indices showed gains driven by technology and gold stocks, with notable rises in companies like Alibaba and Zijin Mining. Market sentiment has been supported by positive manufacturing PMI data from China and expectations of policy measures, including a CNY 500 billion stimulus to accelerate investment amid economic slowdown. The upcoming Fourth Plenum of China's Communist Party is also a focus, as it will outline the country's five-year plan and economic goals. Analysts highlight the calendar effect on the Hong Kong market, noting defensive positioning before the holiday and growth-led rallies during it, with technology stocks benefiting from renewed AI development and easing cycles. Overall, domestic factors and policy expectations appear to weigh more heavily than external events, with the market poised for potential further gains post-holiday.