Hong Kong stocks edged higher to 26,944 in early Friday trade, trying to reverse the prior session’s losses amid modest gains in most sectors. Sentiment improved after a PBoC official said China’s central bank sees “some space” to cut further both the reserve requirement ratio and policy rates this year to aid growth. The board will also lower rates on structural policy tools by 0.25ppts, reducing the one-year relending facility rate to 1.25% from 1.5%, effective Monday. Weekly, the Hang Seng is tracking a rise of around 2.5% after last period’s drop, boosted by the U.S.–Taiwan trade deal under which TSMC will build new factories in Arizona as part of a USD 250 billion investment, while Washington trims tariffs on Taiwanese goods to 15% from 20%. However, gains were capped by caution ahead of China’s Q4 GDP and December activity data, such as industrial output and retail sales. Notable movers included Techtronic Inds. (3.9%), SMIC (2.6%), Minimax Group (2.3%), and CK Hutchison (2.2%).