Hong Kong stocks climb on JD.com earnings as tech giants await spotlight

[WORLD] Hong Kong stocks saw gains as JD.com posted its fastest earnings growth in three years, sparking optimism among investors ahead of results from major companies like Tencent Holdings and Alibaba Group Holding.

JD.com’s impressive performance, with a 23% year-on-year revenue surge, has helped boost confidence in China's consumer-driven recovery. Analysts point to the company's aggressive expansion in lower-tier cities and enhanced supply chain efficiency as key drivers behind its growth, signaling resilience amid ongoing economic challenges.

The Hang Seng Index rose 1.4% to 23,425.51 by 10:05 a.m. local time, while the Hang Seng Tech Index advanced 2%.

Investor sentiment was further buoyed by expectations of strong earnings from Tencent and Alibaba, both of which are set to report later this week. Tencent is under particular scrutiny due to recent regulatory pressures on its gaming and fintech sectors, while Alibaba's results will be closely watched for signs of recovery after a tough year marked by antitrust actions and sluggish consumption.

In addition, investors are considering the impact of China’s latest policy support measures, which include targeted stimulus for key industries and potential easing of regulatory pressures on tech firms. The government’s recent commitment to stabilizing capital markets has provided a much-needed lift to investor sentiment, especially within the beleaguered tech sector.

Meanwhile, the CSI 300 Index and the Shanghai Composite Index on the mainland showed little movement.

The subdued performance in mainland markets reflects ongoing caution among domestic investors, despite the positive momentum in Hong Kong. Concerns over instability in the property sector and intermittent COVID-19 restrictions continue to dampen sentiment, offsetting the optimism from stronger corporate earnings.

Global investors are also watching the divergence between Hong Kong and mainland markets closely. While Hong Kong benefits from improving US-China relations and a weaker dollar, mainland markets remain sensitive to domestic policy changes. This contrast may influence capital flows in the weeks ahead, especially as more corporate earnings reports come in.