The Hang Seng index opened higher on Monday after a sharp decline at the end of last week. It closed the first trading session of the week after gaining 323 points. In this way, the benchmark index not only reversed the Friday losses but also filled the gap that was left last week.
A positive sentiment gripped the Asian markets due to the cooling down inflation in the West and the announcement of support for real estate developers by the Chinese regulators.
In addition, the Chinese central bank also kept the rates constant as the members wanted to see the effect of the recent stimulus.
Consequently, the Hong Kong markets experienced a market-wide positive sentiment on Monday and the Hang Seng index closed 1.86% higher. The index is also showing a breakout which can be considered a major sign of strength.
This is the breakout from the downward trendline which can be very bullish. If the bullish momentum sustains, 18,275 could be the next target for the HSI index.
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