[ET Net News Agency, 12 December 2025] The Dow Jones Industrial Average soared as much
as 698 points intraday to a record 48,756, while Beijing's Central Economic Work
Conference set the tone for next year's economic policy, providing a double boost to risk
assets. Hong Kong stocks opened over 200 points higher and maintained momentum throughout
the morning, overcoming resistance from three major moving averages (25,805-25,863 range).
By midday, the Hang Seng Index stood at 25,878, up 348 points or 1.36%, with main board
turnover exceeding HKD 106.5 billion. The Hang Seng China Enterprises Index gained 104
points or 1.2% to 9,038, while the Hang Seng Tech Index rose 80 points or 1.5% to 5,614.

"Caution advised ahead of potential BOJ rate hike next week"

Overnight, the Dow closed at a record high. After opening more than 200 points higher,
the HSI extended gains past 25,900 this morning. Mak Ka Ka, Head of Financial Products
Trading and Research Department of SinoPac Securities (Asia), told ET Net News Agency that
the Central Economic Work Conference's focus on stimulating domestic demand, cutting
reserve requirements and interest rates, and implementing proactive fiscal policy is
supportive for equities. On the US front, although the Nasdaq dipped as some tech
heavyweights softened, the Dow and S&P 500 continued to climb, reflecting ongoing investor
confidence in US blue chips. Mak noted that tech shares are more sensitive to shifts in
sentiment, and concept-driven rallies may lack staying power, ultimately, investors will
return to fundamentals like earnings and cash flow, explaining the recent divergence
between the Dow and Nasdaq. She expects Hong Kong stocks to remain relatively stable in
the near term, with support seen around yesterday's low of 25,500. As long as the HSI
closes above the 20-day (approx. 25,830) and 100-day (approx. 25,863) moving averages
today, there is scope for a further move towards the 26,200 level. However, with the Bank
of Japan's policy meeting next week, investors should remain alert to the risk of a rate
hike and its potential impact on global financial markets.