Hong Kong’s stock market has remained resilient despite the plunge in the three major equity indexes in the United States sparked by an unsatisfactory labor market report.

The equity market benchmark, Hang Seng Index, closed 0.9 percent higher to finish at 24,733 points on a market turnover of HK$234.6 billion ($30 billion) on Monday.

The Hang Seng China Enterprises Index -- a barometer of Chinese mainland companies -- edged up one percent to finish at 8,893 points, while the city’s technology stock gauge -- the Hang Seng TECH Index -- surged 1.6 percent to close at 5,481 points.

Market sentiment had turned sour after last Friday’s weak US jobs data that were far below expectations, with the three major US equity market indexes losing steam – the Dow Jones Industrial Average fell 1.2 percent, the  S&P 500 slumped 1.6 percent and the NASDAQ tumbled 2.2 percent.

“Overall, US tariffs are relatively expected for Asia, so we think the markets should shrug off the news.  The main focus is on the outcome of the latest round of Sino-US trade talks,” said Lorraine Tan, director of equity research (Asia) at Morningstar Research.

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“If China is able to assure and introduce a way to rein in fentanyl exports, along with an agreement on rare earth, it would help facilitate a trade deal between the US and China,” she said.

James Wang, UBS head of China equity strategy research, said he remains positive about H-shares, and sees strong support for dip buying given attractive valuations that are likely to draw southbound inflows and potential foreign inflows.

“We do see some pressure on the Hong Kong market in the near term due to potential earnings downgrades due to competitive pressures in food delivery and other sectors,” he said.  

“The catalysts to drive further material rerating of the H-shares market include how the anti-involution campaign on the Chinese mainland pans out; new innovations in artificial intelligence; and how mainland policies can stimulate the economy,” Wang added.

Mainland investors are capitalizing on the recent selloff in Hong Kong’s equity market to raise their exposure through record purchases of exchange-traded funds tracking the market.

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According to data compiled by Bloomberg, net purchases of onshore ETFs investing in Hong Kong stocks had surged to an unprecedented 27 billion yuan ($3.8 billion) last week across some 80 products.