Hong Kong stocks rallied on Thursday, buoyed by growing optimism surrounding upcoming trade negotiations between China and the United States. Market participants are hopeful that the talks will lead to a de-escalation of trade tensions that have weighed on global economic growth.

The Hang Seng Index climbed significantly, reflecting the improved investor sentiment. Several sectors experienced gains, with technology and financials leading the advance.

Analysts suggest that positive signals from both sides regarding their willingness to compromise have fueled the rally. However, they caution that the market’s reaction will remain sensitive to any developments in the trade discussions.

Key factors contributing to the positive market movement include:

• Expectations of constructive dialogue between Chinese and US trade representatives.
• Hopes for a potential rollback of existing tariffs.
• Increased buying activity from both local and international investors.

The market’s performance is closely tied to the outcome of the trade talks, and investors are advised to monitor the situation closely.