The Hang Seng surged 377 points, or 1.4%, to close at 26,608 on Monday, extending gains from the prior session amid broad-based advances. Tech stocks led the rally, with the sector index up 3.1%, followed by consumer and property shares. Sentiment was boosted by a decade-high in the Shanghai Composite, reinforcing optimism over the mainland’s strong start to the year. Deflation risks in China also eased in December, while bets mounted that Beijing would step up measures to support demand and supply, improving the earnings outlook. Still, further gains were tempered by a sharp drop in U.S. futures after the Federal Reserve received grand jury subpoenas tied to Chair Powell’s testimony, which he called a pretext linked to Trump’s pressure to cut rates. Caution also intensified ahead of key Chinese data this week, including December trade and Q4 GDP. Solid movers included Meituan (6.3%), JD Health Intl. (4.8%), Xiaomi Corp. (2.2%), Tencent Holdings. (1.9%), and Zijin Gold Intl. (1.5%).
