Investing.com-- Hong Kong’s benchmark stock index rose sharply on Monday and was close to entering a bull market, as it marked an extended recovery from over five-year lows hit at the beginning of the year.index rose 1.5% to 17,916.0 points by 23:47 ET , and was at a five-month high. The index was trading up more than 20% from lows hit around mid-January, with a close at current levels confirming a bull market.
Gains were driven chiefly by technology and property stocks on Monday. Sentiment towards tech was boosted by positive earnings from U.S. tech giants Microsoft Corporation rallied as much as 10% after clocking stronger first-quarter earnings and adding $2 billion to a plan to buy back stocks. But local stocks still remain vulnerable to any negative signals on Chinese growth, or regulatory tussles with the U.S.
But foreign capital inflows had also largely dwindled in recent years, amid persistent concerns over an economic slowdown in China. Hong Kong still remains a major staging point for forays into mainland China.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors.