Hong Kong’s Hang Seng Index saw a sharp rally during Thursday’s trading session (November 5, 2026), climbing 2.9%—or approximately 702 points—to reach the 24,618 level. This gain marks the second consecutive session of growth, pushing the index to its highest point in five weeks. Positive sentiment was fueled by a growing investor appetite for risk assets, following the Democratic Party’s performance in the U.S. midterm elections, which bolstered hopes for a resolution to conflicts in the Middle East.
Market optimism grew on expectations that a shift in the composition of the U.S. Congress could pave the way for diplomatic efforts to end the conflict involving Iran. These prospects triggered a drop in Brent crude oil prices, which fell by more than 8% to below US$95 per barrel. A decline in energy costs has the potential to ease global inflationary pressures and alleviate concerns regarding further interest rate hikes. Furthermore, a weakening U.S. dollar and falling U.S. Treasury yields have enhanced the appeal of stock markets, including those across Asia.
The Hang Seng’s rally was also bolstered by a recovery on Wall Street. The S&P 500 surged 1.6% during Wednesday’s trading—marking its largest single-day gain in three months—while the Nasdaq 100 rose 0.9%. This strong performance boosted investor confidence in the global financial outlook, following a period of pressure driven by political uncertainty and concerns surrounding investments in artificial intelligence (AI). The rebound in U.S. stocks spurred buying activity in several of Hong Kong’s blue-chip equities.
Domestically, measures taken by the Beijing government to maintain stability in the capital markets provided additional support for the index’s gains. A government-backed investment fund has reportedly channeled approximately US$11.5 billion into nine exchange-traded funds (ETFs), while applications for share-buyback loans—supported by the People's Bank of China (PBoC)—have surpassed 200 billion yuan. This liquidity support has helped boost investor confidence. Several blue-chip stocks recorded significant gains, including Tencent (+4.9%), Xiaomi (+4.0%), Meituan (+5.6%), Alibaba (+2.6%), and AIA (+2.4%).