On August 28, Hong Kong stocks opened lower but reversed higher on the futures expiry day, though gains narrowed significantly in the afternoon. As of press time, the Hang Seng Index edged up 0.18% or about 45 points to 25,611.38, after touching an intraday high of 25,699. The Hang Seng Tech Index dipped 0.07% to 4,617.25, while the HSCEI added 0.17% to 8,504.89. Market turnover reached approximately HK$158.9 billion.

On the sector front, software stocks rallied broadly after US-listed Salesforce surged 23% overnight, while the handset supply chain also performed strongly. AI-related names gained, with SenseTime rising over 4%. On the downside, Orient Overseas International slumped over 9% to lead blue-chip losers, while biopharma stocks Akeso and Zhihu Inc. weakened, and gaming stocks broadly retreated.

Software Stocks Surge Across the Board; Kingdee Jumps Nearly 7%

As of press time, Kingdee International (00268.HK) surged nearly 7% to HK$8.99 on turnover of approximately HK$640 million. The rally was fueled by US-listed Salesforce, which delivered better-than-expected quarterly results and skyrocketed 23% in a single session, lifting SaaS and cybersecurity stocks including ServiceNow and CrowdStrike. Analysts suggested the market had overreacted to fears of AI disrupting traditional software, and the sector's resilience has exceeded expectations. Hong Kong software stocks were buoyed by the sentiment, with commentator Zhang Zhiwei expressing a preference for Kingdee International.

Handset Supply Chain Strengthens; BYD Electronic Gains Over 6%

As of press time, BYD Electronic (00285.HK) rose over 6% to HK$24.82, while Sunny Optical (02382.HK) added more than 3% to HK$66.30. Apple concept stocks were firm, with Lens Technology touching a one-month high. The move came after sources indicated that Apple's foldable iPhone could still launch alongside the iPhone 18 Pro in September, improving market expectations for supply chain sentiment.

AI and Lithium Stocks Active; SenseTime Rises Over 4%

As of press time, SenseTime-W (00020.HK) climbed over 4% to HK$1.49 on turnover near HK$1.2 billion. Kingboard Laminates (01888.HK) added over 3% to HK$45.46 on turnover of about HK$3.56 billion. Lithium stocks extended their recovery, with Tianqi Lithium (09696.HK) rising over 3% to HK$38.24 and Ganfeng Lithium (01772.HK) edging up 0.6%. Among resource plays, Aluminum Corporation of China (02600.HK) gained about 3% to HK$8.72.

Tech Majors Diverge; Tencent and Xiaomi Gain, Alibaba and JD.com Slide

Large-cap tech stocks were mixed. Tencent Holdings (00700.HK) rose over 1% to HK$455; Xiaomi Corp (01810.HK) added nearly 2% to HK$27.94; and Bilibili (09626.HK) gained 2% to HK$132.3. On the flip side, Alibaba Group (09988.HK) fell nearly 2% to HK$113.6; JD.com (09618.HK) dropped over 1% to HK$110.8; and Meituan (03690.HK) was nearly flat at HK$77.55.

Orient Overseas Plunges Over 9% as Top Loser; Akeso and Zhihu Weaken

As of press time, Orient Overseas International (00316.HK) tumbled over 9% to HK$155.4 after reporting a 23% decline in first-half profit and a dividend cut, making it the worst-performing blue-chip. Akeso (09926.HK) fell nearly 6% to HK$95.35. Zhihu Inc. (02513.HK) dropped over 5% to HK$1,100. Among mainland property names, Shimao Group (00813.HK) plunged over 13% to HK$0.058. In the gaming sector, Galaxy Entertainment (00027.HK) declined about 2%, while Sands China (01928.HK) and Melco International (00200.HK) both edged lower.