The Hong Kong stock market is expected to rebound by at least 500 points today, buoyed by the late recovery on world markets at the close of trade last week.
The US benchmark Dow Jones Industrial Average closed up 1.82 per cent at 13,079.18 on Friday after the Federal Reserve cut the discount rate by 50 basis points in a bid to stabilise financial markets.
US-listed shares in HSBC and China Mobile rose 5 and 5.1 per cent respectively in response to the move. Analysts said the two stocks alone would contribute gains of about 300 to 350 points to the Hong Kong blue-chip index today.
'Investors should welcome the Fed's move,' said Ben Kwong Man-bun, chief operating officer at KGI Securities.
But some market watchers are still cautious about the local market outlook. Julian Fong, acting chairman of the Hong Kong Association of Banks, said the market could continue to be volatile in the next few weeks.
And Pegasus Fund Managers managing director Paul Pong said market sentiment has turned weak. 'Investors are not keen on buying stocks as more corrections are expected.'
