Hong Kong stocks extend gains to end at 4-1/2-year high, mainland market higher

Hong Kong stocks closed at a 4-1/2-year high on Wednesday, tracking gains on Wall Street, and gold's blistering rally boosted energy and materials shares.

Hong Kong's benchmark Hang Seng Index .HSI was up 2.58%, marking its highest finish since July 2021. It has risen for six consecutive days, its longest winning streak since May 2025.

Energy and materials stocks were top gainers, with the Hang Seng energy .HSCIE and materials sub-indexes .HSCIM jumping 4.35% and 5.39%, respectively.

Gold broke through $5,200 for the first time on Wednesday, after rising more than 3% in the previous session, as the dollar plunged to a near four-year low amid persisting geopolitical concerns.

The surge also supported mainland shares, with the CSI non-ferrous metal sub-index .CSI000811 leaping 6.4% at the close to a record level. China CMOC Group 603993.SS jumped 9.8%, and Zijin Mining 601899.SS rose 4.16%.

The benchmark Shanghai Composite index .SSEC climbed 0.27%, while the blue-chip CSI300 index .CSI300 gained 0.26%.

Embattled property developer China Vanke000002.SZ, 2202.HK rose after the company received further support from Shenzhen Metro, its biggest shareholder.

Separately, China has approved the import of the first batch of Nvidia's H200 artificial intelligence chips, sources told Reuters, marking a shift in position as China seeks to balance its AI needs against spurring domestic development.

The equity market's strength also came alongside a softer U.S. dollar, as traders monitored the prospect of coordinated currency intervention by U.S. and Japanese authorities and awaited the Federal Reserve's interest rate decision.

"Investors will watch closely for any guidance from Fed Chair Jerome Powell on the path of interest rate cuts for this year, as well as whether the earnings of tech giants can justify the pressure of high valuations," analysts at SDIC Securities said in a note.

-Shanghai Newsroom/Reuters