Hang Seng Index is soaring as Kospi and Nikkei 225 implode: here's why

The Hang Seng Index is outperforming other major Asian markets, rebounding nearly 14% from its year-to-date low to around 25,623 and approaching a 26,000 target. The rally is being driven by a rotation into underpriced Chinese tech names as investors unwind exposure to Korea and Japan’s semiconductor-heavy markets. While the Nikkei 225 and Kospi have fallen sharply from highs, Hang Seng constituents such as Xiaomi and Meituan have surged, supported by hopes for Chinese stimulus and improving sentiment toward China’s AI and tech ecosystem. Technically, the index has moved above its 200-day moving average and key pivot levels, reinforcing a bullish near-term setup. The article suggests the trend could continue if capital keeps flowing out of other Asian indices into Hong Kong-listed Chinese growth stocks.