Weekly | Global Stocks Rebound on Dovish Fed Sentiment
Hong Kong markets snapped back this week. The $HSI(HSI)$ climbed 2.53%.
Macro: Fed Dovish Turn Fuels Risk-On Mood
Last Friday, John Williams — the Fed’s No. 3 official and President of the New York Fed — said cooling labor data leaves room for more rate cuts soon.
Fresh U.S. data echoed that softness: retail sales rose just 0.2% in September, slowing 0.4ppt from last month and missing expectations.
Another shocker: Kevin Hassett, head of the White House National Economic Council, has reportedly become the leading candidate for the next Fed Chair. He has openly suggested the new Fed leadership could cut rates.
The CME FedWatch tool now assigns an 84.7% probability to a 25bp cut in December — a jump of 45.6ppt in just one week.
No surprise: U.S. equities ripped higher, with the $NASDAQ(.IXIC)$ up more than 4.2% this week.
Tech Rebounds: Google Leads, Supply Chain Surges
Beyond rate-cut fever, tech stocks roared back. $Alphabet(GOOGL)$ lit a fire under the TPU supply chain; $Taiwan Semiconductor Manufacturing(TSM)$ and $ASML Holding NV(ASML)$ jumped.
China’s “Google supply chain” names rallied hard too, $Zhongji Innolight Co.,Ltd.(300308)$ hit an all-time high, and semiconductors followed with a strong rebound.
Alibaba Sparks AI Hype, Boosts Sentiment
$BABA-W(09988)$ ’s Q2 FY2026 earnings added fuel to the rally:
Alibaba Cloud revenue accelerated to +34% YoY
Qwen AI assistant hit 10 million downloads in a week, surpassing ChatGPT, Sora, and DeepSeek to become the fastest-growing AI app ever.
Management said an AI bubble is “unlikely in the next three years” and hinted at potential increases in capex.
Tech strength pushed investors back into risk assets.
Sector Moves
This week’s top performers: Chemicals, Telecom, Electronics.
At the bottom: Real Estate, dragged down by Vanke’s bond slump.
Southbound fund flows stayed supportive with HK$ 19.8B in net inflows.
Major Events in Hong Kong Stocks This Week
1. $INNOVENT BIO(01801)$ added to the Hang Seng Index; constituents rise to 89.
2.U.S. reportedly considering allowing $NVIDIA(NVDA)$ to sell H200 chips to China.
3.Kevin Hassett signals rate cuts under new Fed leadership.
4. $BABA-W(09988)$ ’s Qwen app tops 10M downloads in a week.
5.Goldman Sachs downgrades $GANFENGLITHIUM(01772)$ (H-share) to “Sell.”
6. $XIAOMI-W(01810)$ founder & CEO Lei Jun boosted his stake.
7. $UBTECH ROBOTICS(09880)$ plans a discounted placement to raise over HK$ 3B.
8. $NIO-SW(09866)$ ’s Q4 revenue outlook +66% to +73% YoY — below expectations.
9. $BABA-W(09988)$ reiterates: no AI bubble in the next three years.
10. $BABA-W(09988)$ ’s Q2 FY26 revenue hit RMB 247.8B (+15% YoY); Alibaba Cloud +34% YoY.
11. $LI AUTO-W(02015)$ expects Q4 revenue of RMB 26.5B–29.2B, down 40.1% to 34.2% YoY.
12.China’s industrial profits rose 1.9% YoY in Jan–Oct 2025.
Three Stocks Worth Attention Among Top Trading HK Stocks This Week
Top1： $XIAOMI-W(01810)$ . Lei Jun bought 2.6M Class B shares at HK$38.58, lifting his stake to 23.26%. Stock popped back above HK$40.
Top 2: $BABA-W(09988)$ . Strong cloud growth and upbeat AI commentary made it a hot trade.
Top 6: $POP MART(09992)$ . China’s new policy to support “interest-based consumption”, including pets, anime, streetwear, and collectibles, triggered a surge. Morgan Stanley called the valuation attractive for entry.
Next Week's Hong Kong Stock Market Events
1. China’s October PMI drops Sunday.
2.Earnings next week: $Salesforce.com(CRM)$ , $Tiger Brokers(TIGR)$ .
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
