Hong Kong stocks climbed 201 points, or 0.8%, to 26,360 on Monday morning trade, marking the third straight session of gains as easing China-U.S. trade tensions lifted risk appetite. Top negotiators from both countries said they had reached a consensus on key disputes, setting the stage for Presidents Donald Trump and Xi Jinping to meet later this week to finalize a trade deal. On the data front, Chinese industrial profits rose 3.2% yoy in the first nine months of 2025, picking up from 0.9% previously, with profits in September alone surging 21.6%, the fastest rise since November 2023, boosted by efforts to curb excess capacity. Locally, Hong Kong’s business mood improved to -2 in Q4 from -8 in Q3, the third straight quarterly rise. Strength was capped, however, by caution ahead of China’s official PMI for October. All sectors advanced, led by consumer, tech, and property stocks. Early movers included Wuxi Biologics (5.1%), Prada (3.2%), Techtronic Industries (2.9%), and SMIC (2.6%).
