Shares of some of the country's biggest companies clawed back some of Thursday’s losses and Hang Seng index closed 2.8% higher Friday.

Mainland China remains closed for the week-long national holiday, Taiwan is closed for a typhoon, and India is closed for Mahatma Gandhi Jayanthi, celebrating the birth of Gandhi.

Alibaba and JD.com are competing for Hong Kong market share amidst China's stimulus plans. Baidu, PDD, NIO, Li Auto, XPeng, and ZEEKR are also affected.

Chinese e-commerce stocks jumped after the country's central bank announced a broad stimulus package. Alibaba, JD.com, and Pinduoduo led the surge.

Both firms have increased investments in the city, waiving delivery fees for some orders and boosting services such as local product returns.