SHANGHAI: Hong Kong stocks hit a two-month high on Tuesday amid buoyant Asian markets, but China stocks took a breather after hitting a decadal high the previous session on record turnover.
- Hong Kong’s benchmark Hang Seng Index climbed 1% by the lunch break, having touched the highest level since Nov. 13, 2025.
- In China, both the blue-chip CSI300 Index and the Shanghai Composite Index were roughly flat.
- A surge in Japanese shares led Asia higher on Tuesday amid investor bullishness over all things AI.
- MSCI’s broadest index of Asia-Pacific shares outside Japan hit a fresh record peak.
- Healthcare and energy shares led the Hong Kong market higher.
- Reflecting the upbeat mood, shares of China’s GigaDevice Semiconductor surged in their Hong Kong trading debut on Tuesday.
- In China, gains in healthcare and gold-related stocks were balanced out by sharp corrections in defence and chip-making shares.
- Rare earth stocks also corrected as finance ministers from the G7 and other major economies met in Washington to discuss ways to reduce dependence on rare earths from China.
- Sentiment was tempered by expectations that China’s record run of exports, driven by diversification in shipment destinations, slowed in the final month of 2025, and the outlook for the coming year depends on manufacturers’ ability to expand further into new markets.
- Shares of Chinese drug developer RemeGen surged by their daily limit of 20% after the company partnered with AbbVie for an experimental treatment targeting solid tumors.
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