Hong Kong stocks close higher Friday

Hong Kong's stock market rallied on Friday, the first trading day of 2026, with the benchmark Hang Seng Index up 2.76 percent to close at 26,338.47 points.

The Hang Seng China Enterprises Index climbed 2.86 percent to end at 9,168.99 points, and the Hang Seng Tech Index soared 4.00 percent to 5,736.44 points.

The Hang Seng Tech Index represents the 30 largest technology companies listed in Hong Kong.

Yemen's transport ministry on Thursday rejected new Saudi-imposed flight restrictions, calling a requirement for planes to stop in Saudi Arabia for security inspections an "air blockade" that undermines national sovereignty.

Officials loyal to the secessionist Southern Transitional Council (STC) have refused to comply with the new protocols ordered by Yemen's Saudi-backed central government, and have partially halted operations in Aden International Airport, the country's primary gateway, a source within the Yemeni government told China's Xinhua News Agency.

The standoff is the latest sign of a deepening fracture within the coalition fighting the Houthi group. While the STC is technically part of Yemen's ruling Presidential Leadership Council (PLC), the group seeks independence for southern Yemen and is frequently at odds with the internationally recognized government.

Saudi Arabia recently ordered all international flights departing and entering Yemen to undergo security screenings at Jeddah Airport before continuing to their final destinations. While some of those restrictions were later eased, they remain in place for all flights traveling to and from the United Arab Emirates (UAE), which is allegedly the main backer of STC.

Government officials said the measures are intended to curb the movement of STC leaders between Yemen and the UAE, effectively cutting off external support for the secessionist movement.

Tensions between the factions escalated this week after the STC seized large swathes of the oil-rich Hadramout province and the eastern province of Al-Mahrah. Riyadh considers these areas a "red line" due to their proximity to the Saudi border and their concentration of Yemen's remaining energy reserves.

On Tuesday, a Saudi-led coalition airstrike targeted vehicles at the port of Mukalla in Hadramout. Saudi officials said the vehicles were intended for STC forces. Following the strike, PLC Chairman Rashad al-Alimi canceled a joint defense agreement with the UAE and ordered all Emirati forces to leave the country within 24 hours. The UAE confirmed Thursday it has begun withdrawing its remaining troops from Hadramout, citing safety concerns.

The STC commands significant control over Aden and other southern cities. Several cabinet members, including Transport Minister Abdulsalam Saleh Humaid, are loyal to the STC rather than the central leadership.