Hong Kong stocks jump on tech rebound before Fed decision as China data signals bumpy economic recovery ahead
- A private report showed Chinese manufacturing contracted again last month, contrasting with an earlier government report signalling an expansion
- The Federal Reserve is expected to downshift in its rate increases this year, starting from this week’s meeting, as US inflation slows
The Hang Seng Index closed 1.1 per cent higher at 22,072.18 on Wednesday, recouping some of the 3.4 per cent setback earlier this week. The Tech Index jumped 3.3 per cent while the Shanghai Composite Index increased 0.9 per cent.
Alibaba Group gained 2.1 per cent to HK$109.90 while Meituan climbed 3 per cent to HK$179.80. BYD led carmakers higher, surging 6.1 per cent to HK$260 while peer Xpeng rallied 10.3 per cent to HK$43.75 and Nio advanced 5.8 per cent to HK$97.05.
Most banks declined, with HSBC losing 1.7 per cent to HK$56.95 and China Merchants Bank sliding 0.3 per cent to HK$50.70.
“The market is in a wait-and-see atmosphere” before the Fed meeting outcome, said Kenny Ng Lai-yin, a strategist at Everbright Securities. Turnover during this week’s pullback “was relatively active, reflecting heavy short-term selling pressure,” he added.
The Fed is expected to raise its key interest rate by 25 basis points later today, downshifting from consecutive 75-basis point hikes in June to November meetings before easing off with a half-point move in December. Consumer prices in the US have declined in recent months, after surging to a four-decade high while the unemployment rate fell.