Key Benchmarks Performance
Global equity markets delivered a strong rebound in April 2026, with performance characterized by a pronounced rotation into growth and technology-oriented sectors, particularly across North Asia. The one-month rally was led decisively by semiconductor and AI-related assets, with the Philadelphia Semiconductor Index surging 38.4%, significantly outperforming all major benchmarks. This sharp advance underscores the continued strength of the global AI investment cycle, which remains the central driver of equity market leadership.
North Asian markets were the primary beneficiaries of this momentum. The KOSPI rose 30.6% over the month, while Taiwan’s TAIEX gained 22.7%, reflecting their deep integration into the semiconductor supply chain and strong leverage to global electronics demand. Japan’s Nikkei 225 also advanced 16.1%, supported by a combination of technology exposure, corporate governance reforms, and favorable currency dynamics. In the United States, the NASDAQ Composite increased 15.3%, further confirming that the technology sector remains at the core of global equity performance. Broader indices such as the S&P 500 and Dow Jones Industrial Average also posted solid gains, indicating that the rally extended beyond pure technology into the broader market.
In contrast, ASEAN markets and select emerging economies lagged during the same period. Indonesia and the Philippines recorded negative monthly returns, while defensive sectors such as healthcare also underperformed. This divergence highlights a clear shift in investor preference toward higher-beta, growth-oriented assets, with capital rotating away from defensive positioning.
Year-to-date performance reinforces a more structural narrative. Markets with strong exposure to semiconductors and AI-related industries continue to dominate, with the KOSPI (+56.6%), Philadelphia Semiconductor Index (+48.3%), and TAIEX (+34.4%) emerging as clear leaders. These trends reflect sustained global demand for advanced computing, AI infrastructure, and electronics, which has translated into strong earnings expectations and capital inflows into these markets.
A second tier of performers includes markets such as Thailand and Brazil, which have benefited from cyclical recovery drivers including tourism normalization and commodity strength. Japan также remains a strong performer year-to-date, supported by structural reforms and consistent foreign investor inflows. Developed markets in the U.S. and Europe have delivered more moderate gains, reflecting stable but less dynamic growth profiles compared to Asia’s technology-driven markets.
On the other hand, several markets have struggled year-to-date. India, Indonesia, and the Philippines have posted negative returns, reflecting a combination of domestic macroeconomic pressures, capital flow volatility, and relatively limited exposure to the global AI value chain. Defensive sectors have also underperformed, indicating reduced demand for downside protection in a risk-on environment.
Table 1: Global Key Benchmarks Performance
Source：LSEG Lipper, as of 26/04/30
Hong Kong MPF Performance by LGC Analysis
Equity Korea stands out as the top performer with a remarkable 36.1% gain, significantly ahead of all other categories in April. This reflects strong momentum in Korea’s export-driven sectors, especially semiconductors and technology. Equity Asia Pacific ex-Japan (+16.7%) also delivered robust returns, reinforcing the strength of the broader regional recovery. Major developed markets posted solid but more moderate gains. Equity US (+10.8%) and Equity Greater China (+10.7%) performed in line with each other, while Global equities (+9.9%) and Japan (+8.4%) trailed slightly. This indicates that while the rally was global, performance leadership remained tilted toward Asia and tech-linked markets.
The year-to-date performance highlights a clear dominance of equity markets, particularly in Asia, with returns largely driven by technology and export-oriented economies. Equity Korea stands out as the strongest performer, delivering an exceptional 67.0% gain, significantly outperforming all other asset classes. This reflects powerful momentum in semiconductor and AI-related sectors, which continue to attract strong global demand and capital inflows. Equity Asia Pacific (+29.7%) and Asia Pacific ex-Japan (+17.8%) also posted robust gains, indicating broad regional strength beyond a single market.
Within developed Asia, Equity Japan (+8.9%) and Equity Greater China (+8.9%) recorded moderate but solid returns, while Equity Global (+7.1%) and Equity US (+5.6%) trailed slightly behind, suggesting that performance leadership remains tilted toward Asia rather than Western markets.
Figure1：Top/Bottom 10 Hong Kong MPF Performance by Lipper Global Classifications, April 2026
Source：LSEG Lipper, as of 26/04/30, in Hong Kong Dollar
Figure2：Top/Bottom 10 Hong Kong MPF Performance by Lipper Global Classifications, Year-to-Date (as of 26/04/30)
Source：LSEG Lipper, as of 26/04/30, in Hong Kong Dollar
Outlook
Hong Kong’s economy demonstrated robust momentum in early 2026, expanding by 5.9% year-on-year in the first quarter—marking the 13th consecutive quarter of growth and the strongest quarterly performance in nearly five years. This represents the fastest pace of expansion since the second quarter of 2021, when GDP grew by 7.6%, and a notable acceleration from the revised 4.0% growth recorded in the fourth quarter of 2025.
On a seasonally adjusted quarter-on-quarter basis, economic activity also strengthened משמעותfully, with GDP rising 2.9% in the January–March period, compared with 1.0% growth in the previous quarter. This sequential improvement underscores a broad-based recovery supported by both external demand and domestic economic resilience.
Hong Kong government has projected full-year GDP growth in the range of 2.5% to 3.5% for 2026, following a solid 3.5% expansion in 2025. While this outlook reflects a more moderate pace compared with the strong start to the year, it remains indicative of sustained economic stability amid an evolving global landscape.
A key driver underpinning this performance has been the rapid global advancement of artificial intelligence (AI). Surging demand for AI-related technologies—including semiconductors, advanced computing infrastructure, and consumer electronics—has provided meaningful support to Hong Kong’s export sector. This structural growth trend has helped offset the potential drag from ongoing geopolitical tensions and trade uncertainties, reinforcing the city’s role as a critical node in global technology supply chains.
Beyond exports, several additional factors continue to support Hong Kong’s positive economic outlook. According to government commentary, these include resilient growth in inbound tourism, which is steadily recovering and contributing to retail, hospitality, and service sector activity, as well as robust cross-boundary financial flows, reflecting Hong Kong’s deep integration with Mainland China and its status as a leading international financial center.
Looking forward, Hong Kong’s economic prospects remain constructively positive, supported by a combination of cyclical recovery and structural drivers. Strong global demand for AI-related products, continued normalization of travel and consumption patterns, and expanding cross-border financial activity are all expected to provide sustained momentum. At the same time, proactive policy measures and the city’s strategic positioning within regional and global financial ecosystems will continue to play a critical role in reinforcing growth resilience and long-term competitiveness.
