Investment 10/2/2026

The Hang Seng Index opened 422 points higher at 26,982 and maintained its upward trend, reaching a high of 27,111, a gain of 551 points. It closed the day up 467 points, or 1.75%, at 27,027. The Technology Index rose 71 points, or 1.33%, to 5,417. Main board turnover was HK$255.1 billion.


As expected, Hong Kong stocks performed well. If it can quickly fill the gap from last Monday's (January 2nd) drop from 27,100 to 27,384, the Hang Seng Index has a chance to reach 27,500 this week, and could then challenge the recent high of 28,056 reached on January 29th. However, whether it can stabilize for two days is crucial to determine its future momentum; for now, the Hang Seng Index is expected to trade within a range. Furthermore, due to the Lunar New Year holiday next week, Hong Kong stocks will only be open for one and a half days, so turnover is expected to gradually decrease in the middle of this week.


European stocks performed well, with UK, French, and German stocks rising 0.16%, 0.6%, and 1.19%, respectively.


After a strong rebound on Friday, US stocks rallied on Monday in the absence of new catalysts. The Dow Jones Industrial Average opened 67 points lower and briefly dipped below the 50,000 mark, falling as much as 278 points to a low of 49,837. It then broke through resistance, rising to 50,219, a gain of 103 points, before closing at a slightly new all-time high. The S&P 500 briefly rose 0.69%, while the tech-heavy Nasdaq Composite jumped as much as 1.23%.


At the close, the Dow Jones Industrial Average rose 20 points, or 0.03%, to 50,135; the S&P 500 gained 32 points, or 0.47%, to 6,964; and the Nasdaq Composite gained 207 points, or 0.9%, to 23,238.


The US dollar index fell as much as 0.86% to 96.79. Following the Japanese House of Representatives election, Japanese officials stated they were monitoring the currency market, causing the yen to rise 1.08% to 155.52 against the dollar. The euro rose 0.96% to $1.193. Bitcoin continued to fluctuate, having fallen as much as 3.4% to a low of $68,263 yesterday, before slightly recovering to above $71,000. Spot gold prices rebounded above $5,000 per ounce, rising as much as 2.51% to $5,085.92.


Following the ruling coalition's landslide victory in the House of Representatives election, Prime Minister Sanae Takaichi is now more likely to push through her aggressive fiscal stimulus policies. Katsuya Okada, a heavyweight member of the Constitutional Democratic Party and considered a pro-China figure, failed to retain his long-serving seat in Mie Prefecture's 3rd constituency in this House of Representatives election. Japanese stocks rebounded on Monday, with the Nikkei index surging as much as 3,083 points (5.68%) to a high of 57,337, before closing up 3.89% at 56,363, a record high. JPMorgan Securities predicts the Nikkei will reach 61,000 by the end of the year.

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