The Hong Kong stock market extended gains. The Hang Seng Index (HSI) rose by 1.94%, and the Hang Seng Tech Index (HSTECH) rose 3.4%.

SMIC rose 7.2%, XPeng rose 5%, Nio rose 4%, Alibaba rose 2.5%, Tencent rose 2%, JD.com rose 1.4%.

After a cautious start to the day, stocks turned higher upon data that showed China’s service activity expanded at the fastest pace since July, and comments from the premier that the country has ample policy room. Sentiment also got a lift after the nation’s top legislative body reviewed a proposal that aims to reduce the financial burden of local officials.

A greater focus for the week is on the US presidential vote, as polls show Americans narrowly split between Donald Trump and Kamala Harris. The likelihood of a disputed result may drag the vote count out for weeks, spurring a potential rise in volatility.

“It would absolutely make a lot of sense for the Chinese government to be keeping some of their stimulus powder dry in expectation and trying to understand what is going to happen out of the United States,” James Sullivan, head of APAC equity research at JPMorgan Securities Singapore, told Bloomberg TV. “A Trump victory is more in the price than a Harris victory.”