The Hang Seng surged 293 points or 1.3% to close at 23,530 on Friday, reversing losses in the prior three days amid widespread sectoral gains. The index emerged from a three-week low, boosted by the PBoC’s decision to leave key lending rates unchanged after cutting them to record lows in May to spur growth and offset rising U.S. tariffs. Sentiment was also lifted as the U.S. downplayed speculation that it was close to joining Israel in launching strikes on Iran.
However, the Hang Seng lost 1.5% for the week—its first weekly fall in three and the steepest since early April—after the Fed warned that inflation risks remain “meaningful,” signaling a slower pace of rate cuts in 2026, though still keeping the door open for two reductions this year. United Laboratories climbed 2.2% after receiving a $180 million upfront payment from Novo Nordisk under an exclusive licensing deal. Other top gainers included Sunny Optical Tech (4.2%), Mixue Group (3.1%), and SMIC (1.9%).
