Hong Kong Shares Surge to New Heights Amid Positive Economic Outlook

Hong Kong shares reached a three-year high, spurring positive sentiment across Asian markets influenced by encouraging Chinese data. European markets are expected to open strong, benefiting from potential economic reforms. Despite concerns over U.S. tariffs, China's market remains resilient, supported by government measures to boost domestic consumption.

Hong Kong shares soared to a three-year high on Tuesday, leading a wave of optimism across Asian markets. Investors are buoyed by the improved outlook for China, driven by recent positive data and government initiatives aimed at bolstering the world's second-largest economy.

The upbeat sentiment is anticipated to extend into European trading hours as futures indicate a robust start. EUROSTOXX 50 and DAX futures saw notable gains ahead of a crucial vote in Germany on increased borrowing, which aims to bolster Europe's largest economy and stimulate regional growth.

In the U.S., the OECD warned that President Trump's tariffs could hamper growth in North America, although China has benefited from the trade tensions. Market momentum is shifting positively, as evidenced by gains in the New Zealand and Australian dollars, both sensitive to Chinese economic trends.

(With inputs from agencies.)