Hong Kong stocks yesterday posted their fourth-largest rally this year in points terms after a US Federal Reserve official signalled a possible interest-rate cut next month.
The Hang Seng Index led gains across Asia, surging 1,111.3 points or 4.06 per cent to 28,482.54. The H-share index added 3.98 per cent to 17,014.13 points.
Shanghai's benchmark rose 4.16 per cent while Japan's Nikkei-225 Index gained 2.38 per cent.
'Hopes of further rate cuts have benefited most important markets around the world as some have been oversold,' said Patrick Yiu Ho-yin, an associate director at CASH Asset Management.
The bullish sentiment lifted turnover in Hong Kong to HK$146.59 billion, up 40.8 per cent from Wednesday's HK$104.13 billion.
Gains were fuelled after Fed vice-chairman Donald Kohn signalled a readiness to cut rates again, acknowledging that financial market turmoil could slow the US economy.
US traders bet there is a 100 per cent chance the Fed will cut rates by a quarter percentage point to 4.25 per cent on December 11.
