The Hong Kong index of the top shares has a clear support level for further gains.
HK 50 – Daily Chart
The HK 50 continued a bearish slant into year-end with a third or fourth test of support just ahead of the April highs. That could be a platform for another move higher if global sentiment is positive.
Losses in technology heavyweights like Kuaishou, Tencent and Xiaomi on Tuesday, with the Hang Seng closing 0.1% lower. The Hang Seng Tech Index dropped by 0.7%, while the CSI 300 Index climbed 0.2%. Kuaishou fell as much as 6% on Tuesday after a cyberattack hit the short-video platform.
Goldman Sachs analysts said in a Monday report that they expect the China stock bull run to continue next year, but at a slower pace. The bank sees Chinese stocks gaining 38% by the end of 2027, driven by 14% profit growth in 2026 and 12% the following year.
Hedge funds cut bets in Hong Kong in mid-December and added short bets to Japan, but the outlook will be better for the HK 50 in the new year as Japan continues to be at the mercy of its bond market struggles in recent weeks.
Japan’s 10-year bond hit a 26-year high after another BOJ rate rise and fears over the country’s debt and spending.
