Hong Kong's benchmark Hang Seng Index opened 0.36% higher, while the Hang Seng Tech Index gained 0.48%.

Automotive stocks were notably stronger, with NIO Inc. (HKEX: 09866) shares rising close to 5%. XPeng Inc. and Li Auto Inc. also saw gains exceeding 1%.

Brokerage Views on Market Outlook

Regarding the market outlook, Huatai Securities Co., Ltd. expressed the view that for the Hong Kong market overall, a sustained reversal in its central trajectory still depends on catalysts from major tech companies' AI progress and a recovery in consumption. The brokerage believes the timing is not yet appropriate. It also noted that its previously anticipated short-term technical rebound has been suppressed by record-high short selling pressure, resulting in a pattern of brief, fleeting rallies. Looking ahead, the firm suggests focusing short-term on sectors with high short interest and marginal improvements in earnings expectations, such as media (core stocks) and innovative pharmaceuticals.

Caixin Securities highlighted that, considering the domestic and international environment, against the backdrop of rising expectations for further U.S. Federal Reserve interest rate hikes, the U.S. dollar index is likely to maintain a relatively strong position. This could lead to a potential slowdown in the pace of global liquidity easing, weakening the momentum for cross-border capital flows into emerging markets like Hong Kong. This dynamic may constrain liquidity recovery in the Hong Kong market and the performance of southbound trading targets.

Guoyuan International indicated that short-term market sentiment has shown some improvement, but it is not advisable to excessively increase risk exposure. Investors could moderately focus on growth sectors with stronger earnings certainty and higher elasticity. The firm added that if the Federal Reserve maintains a neutral-to-hawkish stance, the market might return to a consolidation pattern after a brief recovery. Conversely, if the Fed releases unexpectedly dovish signals, sectors that have experienced significant pullbacks and possess advantages in dividend yield and valuation could see a valuation recovery.