In today’s trading session, Hong Kong led another surge in Asian markets fueled by an increase in tech giants, as the yen continued to strengthen against the dollar amidst renewed optimism regarding potential US interest rate cuts. 

The Hang Seng index surged by up to 2.2%, poised for its ninth consecutive day of gains, marking its long winning streak since January 2018. The rally was mainly fueled by e-commerce leader Alibaba, rising by 3.5%, and its rival JD.com, which gained 4.2%. 

China’s domestic stock exchange is closed for the week due to the Labor Day holiday, yet sentiment remains optimistic following indications from China’s top policymakers signaling continued support for economic growth during the Politburo meeting last April 30th. 

Chinese authorities have encountered challenges in jumpstarting an economic recovery following the strict Covid lockdown measures in late 2022. In the last few months, officials have unveiled a range of targeted initiatives and the issuance of sovereign bonds aimed at bolstering infrastructure investment and reigniting economic momentum, yielding varied outcomes. 

In the past few months, authorities have unveiled a series of targeted measures and initiated the issuance of sovereign bonds to stimulate infrastructure spending and rejuvenate economic activity, yielding mixed results

Nevertheless, China remains embroiled in a crisis within its debt-laden property market, with home prices declining in recent months, compounded by sluggish domestic demand impacting retail sales. 

Meanwhile, the Nikkei 225 slightly went down by 0.1% trading at 38,236.07. South Korea’s Kospi also slipped by 0.26%, closing at 2,676.63.

Australia’s S&P/ASX 200, on the other hand, went up by 0.55% to 7,629.