Hang Seng Index: Alibaba, Baidu, and Real Estate Stocks Drive Market Gains

US Equities Shine on US-China Trade Headlines

Wall Street rallied for a third consecutive session as US-China trade headlines continued driving the market recovery from early March. The Nasdaq Composite Index jumped 2.74% on Thursday, April 24, while the Dow and the S&P 500 added 1.23% and 2.03%, respectively.

President Trump confirmed trade negotiations with China resumed on April 24, though Beijing reportedly downplayed these claims, calling on Washington to demonstrate sincerity before talks could proceed.

Alphabet Inc. (GOOGL) added to the bullish mood, rallying 2.53% during regular trading and soaring 4.63% in after-hours trading following better-than-expected earnings. The tech giant also announced a whopping $70 billion buyback and a 5% dividend increase, reinforcing positive sentiment.

Hang Seng Advances on Trade Developments

Asian markets mirrored Wall Street’s gains on Friday, April 25. The Hang Seng Index advanced 0.72% as investors responded to President Trump’s softer stance on China tariffs. Tech and real estate stocks contributed to the gains.

• Tech Stocks: Alibaba (09988.HK) and Baidu (09888.HK) posted morning gains of 3.44% and 1.85%, respectively.
• The Hang Seng Mainland Properties Index rallied 2.21% on bullish sentiment.

Brian Tycangco shared news of Citigroup analysts urging investors to increase exposure to Chinese real estate stock, stating:

“Citigroup urges investors to build positions in Chinese property stocks. Get ready. When China’s property market comes roaring back, the rest of the economy usually follows. This is also great news for commodities. Everything from iron, coal (for steel), copper, aluminum… demand will grow in the world’s biggest market for these things.”

However, Mainland China’s market trends reflected investor caution amid mixed trade signals. The CSI 300 rose 0.24%, while the Shanghai Composite Index was flat in morning trading.

Nikkei 225 Climbs on Yen Softness

Japan’s Nikkei 225 climbed 1.38% on Friday morning, extending Thursday’s gains. Reports of the US nearing a trade deal with India that could form a blueprint for a US-Japan trade agreement boosted investor confidence.

A softer Japanese Yen contributed to the upside as the USD/JPY pair advanced 0.28% to 142.960. A potential US-Japan trade deal and a weaker Yen may boost demand for Japanese goods and improve corporate earnings.

Nissan Motor Corp. (7201) rose 2.73%, while tech stocks Softbank Group Corp. (9984) and Tokyo Electron (8035) rallied 2.19% and 2.99%, respectively.

Outlook: Trade, Stimulus, and Central Bank Signals

Easing trade tensions may sustain near-term demand for risk assets, though market direction remains tied to progress in US-China negotiations. Meanwhile, Beijing’s stimulus plans and central bank signals will continue shaping investor sentiment.

Additional stimulus from Beijing could offset tariff-related pressures, potentially lifting the Hang Seng Index and Mainland Chinese stocks. However, an extended trade standoff risks disrupting global supply chains and driving inflationary pressures. In this scenario, major central banks may signal dovish policy stances, supporting risk assets.

Under volatile market conditions, investors may benefit from strategies aligned with evolving tariff-related, monetary, and geopolitical risks. For deeper analysis, see our latest market coverage.