Key Takeaways:
The Hang Seng Tech Index erased a more than 1% decline to close higher on Tuesday, as a rally in JD.com Inc. (9618.HK) and other technology giants powered a sharp afternoon recovery.
"The strong earnings from JD.com provided a much-needed sentiment boost to the tech sector, which has been under pressure," said Victor Cheung, an analyst covering Hong Kong and mainland equities. "It shows that some of these companies can still deliver growth despite the challenging macro environment."
The tech gauge swung from a loss of as much as 1.2% to close up 0.8%. The broader Hang Seng Index, which had been down 0.5%, also finished the day in positive territory, rising 0.2%. Turnover on the main board was HK$125.6 billion, slightly below the 20-day average.
The reversal was primarily driven by JD.com, which saw its shares soar more than 6% after the e-commerce giant posted first-quarter net profit that beat analyst estimates. The company reported a net profit of 5.10 billion yuan ($750.6 million), reversing a loss from the previous quarter and signaling that its investments in new areas like food delivery are beginning to pay off. Meituan (3690.HK) also contributed to the positive momentum, with its shares climbing 4%. The positive sentiment from the tech sector helped offset broader concerns about the global economic outlook that had weighed on the market earlier in the day. The U.S. 10-year Treasury yield ticked higher overnight, and the onshore yuan (CNY) remained a focus, trading near 7.24 per dollar.
The intraday turnaround suggests that investors are selectively buying into technology stocks that can demonstrate earnings resilience. The focus will now be on whether this positive momentum can be sustained, with upcoming economic data from China and the U.S. likely to provide further direction for the market.
This article is for informational purposes only and does not constitute investment advice.
