Hong Kong Stocks Surge on China's Stimulus Amid Global Tensions

Hong Kong stocks surged over 2% as investors reacted positively to China's major economic stimulus measures. Meanwhile, global markets reacted cautiously to tensions in the Middle East. The Hang Seng Index saw a significant rise, becoming Asia's top-performing market, while the CSI 300 Index posted record gains.

Hong Kong stocks experienced a notable surge of over 2% on Friday. This bullish trend comes in response to China's substantial economic stimulus proposals, even as global markets expressed caution due to escalating tensions in the Middle East.

The aggressive stimulus measures from Beijing, described as the most extensive since the pandemic, include significant rate cuts and fiscal support to stabilize the struggling economy. Consequently, the Hang Seng China Enterprises Index increased by 2.55% and the Hang Seng Index advanced by 2.2%.

The Hong Kong market has risen dramatically, with the Hang Seng Index climbing 22% since late September. It has even surpassed Taiwan, emerging as the best-performing stock market in Asia. Analysts highlight the influence of the People's Bank of China's new financial tools on the market's performance.

(With inputs from agencies.)