Asian Markets Rally as Trade Tensions Ease; CATL Earnings Boost EV Sector

Market Rally Driven by Easing Trade Concerns

Asian equities posted significant gains amid reports of easing trade tensions between the United States and China, according to market analysts. Sources indicate that President Trump’s outlined focus areas and announced 2026 China visit contributed to improved market sentiment. The renminbi reportedly appreciated to 7.11 per USD from nearly 7.14 just a week earlier, supporting the positive momentum.

Market Rally Driven by Easing Trade Concerns
Hong Kong Markets Show Strength
CATL Earnings Boost Electric Vehicle Sector
Mixed Performance Across Sectors
Mainland China Outperforms
Institutional Positioning and Analyst Outlook

Hong Kong Markets Show Strength

Hong Kong’s Hang Seng Index closed above the 26,000 level, while the Hang Seng Tech Index finished above 6,000, according to trading reports. Market observers suggest growth stocks led the gains, particularly internet companies like Alibaba, which jumped +1.98% following reports of new AI initiatives targeting ByteDance. Hardware technology stocks reportedly benefited from strong iPhone sales, supporting both Apple and Foxconn supply chains along with the Huawei ecosystem.

Insurance stocks also showed notable performance, with China Life rising +6.04% to what analysts described as a ten-year high following its positive Q3 net income release. The report states that despite the strong showing, trading volume remained relatively light throughout the session.

CATL Earnings Boost Electric Vehicle Sector

Contemporary Amperex Technology Co. Limited (CATL) gained +3.03% after reporting preliminary Q3 net income increased by approximately +41%, according to company filings. The strong results from the battery giant reportedly lifted electric vehicle ecosystem stocks across Asian markets. Analysts suggest the performance indicates continued strength in the EV supply chain despite global economic uncertainties.

Mixed Performance Across Sectors

Bilibili rallied +8.88% thanks to what sources describe as broker upgrades following a new online game launch. Conversely, Pop Mart, the maker of popular Labubu dolls, fell -8.08% ahead of its Q3 results, despite management’s expectations for revenues to climb by 245-250% year-over-year. Precious metals reportedly faced profit-taking pressure, with Zijin Gold International down -4.29%., according to market insights

Mainland China Outperforms

Mainland China markets demonstrated even stronger performance than Hong Kong, with advancers outpacing decliners, according to trading data. The report indicates growth stocks continued to lead despite slightly light volume. Market participants reportedly expect the upcoming 15th Five-Year Plan draft to emphasize science and technology development, with the Fourth Plenum currently underway to draft the document.

The Apple ecosystem performed well in mainland markets, led by Foxconn’s +9.57% gain, according to trading reports. Shenzhen and the STAR Board reportedly outperformed the more value-driven Shanghai market, while mainland insurance stocks showed strength and precious metals edged higher.

Institutional Positioning and Analyst Outlook

Recent data from Copley Fund Research suggests both institutional investors and active fund managers remain underweight China, creating what some analysts describe as potential for a “pain trade higher.” Morgan Stanley’s China strategists have garnered attention in mainland media with bullish comments on both mainland China and Hong Kong equities, according to market reports.

Market observers note that while the session showed strong performance across multiple sectors, trading activity remained relatively quiet overall, with investors reportedly monitoring ongoing trade developments and upcoming economic policy announcements.