Hong Kong stocks rose for a third day, with the Hang Seng Index gaining 0.8%, while the Hang Seng Tech Index climbed 1.1%. Chinese pharmaceutical firms led the gains, boosting optimism for China’s pharmaceutical sector to become a global hub for innovative drugs. Alibaba and Tencent also saw gains.

Cooling US inflation eased fears of a global bubble in AI, with core US inflation slowing to 2.6% in November. The Hang Seng Index finished the week lower despite the gains, with Xiaomi, Baidu, and Alibaba Group Holding among the biggest decliners. Two new companies started trading in Hong Kong.

The Japanese yen weakened after the Bank of Japan raised interest rates by 25 basis points, calming fears of market turmoil. Other major Asian markets also rose, with Japan’s Nikkei 225 climbing 1%, South Korea’s Kospi rising 0.7%, and Australia’s S&P/ASX 200 adding 0.5%.

Read more at Yahoo Finance: Hong Kong stocks cap longest rising streak in 3 weeks on cooling US inflation data