Hong Kong’s Hang Seng Index surged 2.11% on Aug 25, approaching a four-year peak, fueled by a robust tech rally and broader Asian market gains after Federal Reserve Chair Jerome Powell signaled potential monetary easing in September.

The Hang Seng Tech Index jumped 3.11%, with electric vehicle maker Nio soaring 14.73% and semiconductor firm ASMPT advancing 6.74%.

Mainland China’s CSI 300 extended its winning streak to four sessions, climbing 1.39% to a 37-month high. Analysts at Goldman Sachs noted shifting investor behavior, with maturing time deposits potentially flowing into equities due to declining interest rates, while anticipated Fed rate cuts could trigger capital rotation from the U.S. to Chinese markets.

Property stocks rallied sharply after Shanghai eased home-buying restrictions for eligible families. China Vanke led gains with a 15.28% surge despite reporting a widened net loss of $1.67 billion for the first half of 2025. Longfor Group and New World Development rose 7.84% and 6.96%, respectively, reflecting renewed sector optimism.

Regional markets mirrored the upbeat sentiment: Taiwan’s Taiex jumped 2.47%, South Korea’s Kospi gained 1.14%, and Japan’s Nikkei 225 edged up 0.27%. Australia’s S&P/ASX 200 briefly crossed the 9,000 threshold before closing 0.22% higher, while India’s Nifty 50 and Sensex posted modest gains.

Singapore’s July inflation registered 0.6%, slightly below forecasts, reinforcing expectations of stable monetary policy across the region. The broad-based rally underscores growing confidence in a soft landing for the global economy, supported by accommodative central bank policies and resilient regional equity inflows.

Source: CNBC.