(Bloomberg) -- Hong Kong stocks are adding to this month’s world-beating performance as dovish comments from Federal Reserve Chairman Jerome Powell reduce one of the key overhangs for the city’s shares.

The Hang Seng Index has jumped 7.1 percent in November, putting it in first place among 94 benchmarks tracked by Bloomberg, with Tencent Holdings Ltd. contributing a quarter of the gain. The rally comes after the gauge was bludgeoned this year by concern tightening U.S. monetary policy and a slowing Chinese economy will hurt earnings.

As one of Asia’s largest and most open equity markets, Hong Kong typically acts as a barometer of global liquidity expectations and macroeconomic concerns. Throw in a currency peg to the greenback and a property bubble, and the city’s stocks become even more sensitive to the pace of Fed hikes.

The measure rose 0.3 percent on Thursday, led by property developers, with a gauge of buying momentum rising to the highest since June.

Obstacles remain before traders can truly celebrate. The gauge is still down 11 percent this year, though it’s done a lot better than the Shanghai benchmark, which languishes at the bottom with a 21 percent loss. Mainland investors have sold a net $537 million of Hong Kong shares via exchange links in the past five days, while China’s economy remains a concern given rising bond defaults and real estate jitters.

Some analysts remain cautious. JPMorgan Chase & Co. and Goldman Sachs Group Inc. have underweight ratings on the MSCI Hong Kong Index, which doesn’t include China companies such as Tencent that dominate the Hang Seng Index.

But for now, Powell is helping round out a winning gain for the month. Any progress from the meeting between presidents Xi Jinping and Donald Trump this weekend could turn this into a real Santa rally.

©2018 Bloomberg L.P.