AI & TikTok Momentum Drives Hong Kong to Four-Year High Amid Fed Anticipation

Hong Kong’s equity markets rallied to their highest level in about four years, supported by a renewed sense of confidence over AI developments and a possible resolution in negotiations that would allow TikTok to continue operating in the U.S. This surge came as global investors prepared for a likely rate cut by the Federal Reserve, adding fuel to risk-on sentiment across Asia.
While the dollar remained soft, the euro strengthened to levels unseen since 2021, providing relief to European exporters but pressuring other regions. Gold saw a sharp run as investors sought safe haven assets, briefly pushing past the US$3,700 mark. In Japan, the Nikkei retreated slightly from its recent record highs following disappointing export numbers, highlighting the fragility of growth amid trade and supply chain headwinds.
Meanwhile, central bank policy paths outside the U.S. contributed to the mix. Canada is expected to ease rates, while Indonesia caught markets off guard with a surprise cut, both moves underscoring the expanding narrative that global monetary conditions are shifting. Overall, markets seem poised along a knife-edge: optimistic about technological innovation and policy easing, but wary of data that could upend expectations.