E-commerce giant Alibaba Group Holding Ltd led gains in Chinese tech stocks after investors were understood to be repositioning ahead of the company's quarterly results report.
It was detailed that Alibaba shares rose 6.5% to lead Hong Kong's Hang Seng Tech index for 2 consecutive sessions after Nancy Pelosi's controversial visit to Taiwan yesterday upset the market.
Vey-Sern Ling of Singapore's Union Bancaire Privee comments, the rebound in the tech sector is taking place across the broader market with average investors pricing in risk again.
Despite this, Alibaba shares are still down 20% so far this year in Hong Kong with the company's outlook looking bleak after Covid restrictions hurt the company's 2nd quarter growth.
In addition, worries about a slowing economy, regulatory crackdowns and the United States (US)-China tensions also contribute to Alibaba's gloomy outlook.
Following the streak, analysts expected Alibaba's April-June sales to fall 0.9% from a year earlier, marking its first quarterly revenue contraction.
Some analysts are seen focusing on cost reduction measures and investment spending plans in the company's results.
In the meantime, investors are seen measuring the ability of Alibaba's business in the coming quarter after China begins to ease restrictions and economic recovery policies.
