The Hong Kong Stock Exchange in Hong Kong, China, on Wednesday, July 13, 2022.
Paul Yeung | Bloomberg | Getty Images
Hong Kong stocks briefly rose 7% on Friday, with tech and consumer cyclical stocks driving the surge amid China reopening rumors and a report that U.S. inspections of Chinese company audits were completed more quickly than expected.
The Hang Seng index was last up 6.84%, while the Hang Seng Tech index soared 9.28%. Stocks in the city have been reacting to speculation about a potential China reopening as zero-Covid policies persist, dragging the economy.
In mainland China, the Shanghai Composite Index climbed 2.54% and the Shenzhen Component gained 3.366%.
Stefanie Holtze-Jen, APAC CIO at Deutsche Bank, said China's reopening is still an uncertainty, but it's "exciting to see these rumors coming about."
"The market seems to think if there's smoke, there must be fire," she said, adding that she is watching for announcements about the upcoming Shanghai marathon and articles in the Chinese Communist Party's newspaper, People's Daily, for changes in tonality.
She also told CNBC's "Capital Connection" that she is paying close attention to economic meetings in December.
Other markets in the Asia-Pacific continued to process the Fed's 75 basis point interest rate hike and looked ahead to the jobs report.
Japan's Nikkei 225's fell 1.75% after a holiday on Thursday. The Topix slid 1.37%. In South Korea, the Kospi added 0.48%. MSCI's broadest index of Asia-Pacific shares outside Japan was 2.6% higher.
Australia's S&P/ASX 200 rose 0.5%. The Reserve Bank of Australia released its monetary policy statement Friday.
Asia-Pacific currencies strengthened as the U.S. dollar index slipped.
The monthly U.S. employment report is scheduled to be released later. Economists expect 205,000 jobs were added in October, and forecast the unemployment rate remained at 3.5%, according to Dow Jones.
Overnight, U.S. stocks declined for a fourth consecutive session. The Dow Jones Industrial Average slid 146.51 points, or 0.46%, to close at 32,001.25. The S&P 500 lost 1.06% to finish at 3,719.89, while the Nasdaq Composite shed 1.73% to settle at 10,342.94.
—CNBC's Samantha Subin, Carmen Reinicke contributed to this report.
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