Hong Kong stocks retreated from a four-month high on Thursday after a rally that sent a key gauge of Chinese technology stocks into a bull market took a breather, as investors pared bets because of the Federal Reserve's hawkish interest-rate outlook.

Investors see Trump’s tariff playbook causing inflation, which could force the Federal Reserve to keep interest rates higher for longer.

European and Asian markets rose on Friday, with Hong Kong leading the way thanks to a surge in tech stocks led by e-commerce titan Alibaba.

Success of DeepSeek’s AI model to bolster the appeal of the nation’s tech stocks that trade at depressed valuations, Invesco says.