The Hang Seng Index (HSI) delivered a strong weekly performance, rising to approximately 25,976.79 by Friday’s close and posting a gain of around 1.75%. The move came amid improving regional risk appetite, as investors selectively rotated back into Hong Kong-listed equities following weeks of cautious positioning.

Weekly Performance Driven by Late-Week Strength

Trading during the early part of the week was mixed, with the index initially drifting lower as investors remained cautious about macroeconomic visibility in China and broader global market volatility. However, sentiment shifted decisively midweek, with a sharp upward move on Thursday and continued gains into Friday.

The late-week rally pushed the Hang Seng toward the higher end of its recent range, with the index briefly approaching the 26,000 level. This marked one of the strongest weekly advances in recent weeks and contrasted with softer performance seen in some global equity benchmarks. The rebound suggested renewed demand for large-cap Hong Kong names, particularly those with exposure to technology, financials, and consumer sectors.

Macro and Regional Factors Supporting Sentiment

Improving sentiment toward China-related assets played a central role in the index’s advance. While structural concerns around China’s growth outlook persist, investors appeared encouraged by signs of policy support and stabilization in selected economic indicators. These developments helped lift confidence in Hong Kong as a gateway market for international exposure to China.

Global factors also provided support. Relative stability in U.S. interest rate expectations and easing volatility across major equity markets helped reduce downside pressure. For Israeli and international investors, the Hang Seng’s performance highlighted the index’s sensitivity to shifts in global risk sentiment and perceptions of policy responsiveness in Beijing.

Technical Picture and Market Positioning

From a technical perspective, the Hang Seng’s rebound brought it closer to key resistance near the 26,000–26,100 zone, an area that has capped advances in recent months. The index remains below its 52-week high, but the current recovery has improved short-term momentum and reduced immediate downside risks.

Market positioning suggests that investors are becoming more selective rather than broadly bullish. Trading patterns indicate a focus on higher-quality, liquid names rather than broad-based accumulation. This selective approach reflects lingering uncertainty, even as short-term momentum has turned more constructive.

Looking ahead, attention will remain on Chinese economic data, policy signals, and global market conditions. A sustained breakout above resistance would likely require clearer evidence of economic stabilization and continued policy support. Conversely, renewed global volatility or disappointing macro data could quickly test the durability of the recent gains, keeping the Hang Seng sensitive to both regional and global developments.