Alibaba, Meituan sustain Hong Kong stock rebound as Fed buoys markets with dovish stance through 2023

Hang Seng Index jumped 1.3 per cent with Alibaba, Sunny Optical, Meituan pacing the rally in technology stocks

The Federal Reserve signalled rates would remain near zero through 2023 after its rate meeting, saying the rise in bond yields was not disorderly

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A pedestrian wearing a protective mask reflected on an electronic stock board outside a securities firm in Tokyo. Photo: Bloomberg

Published: 10:42am, 18 Mar 2021Updated: 5:13pm, 18 Mar 2021

Hong Kong stocks rose, pushing the benchmark index to its longest winning streak in a month, after the Federal Reserve signalled borrowing costs will remain near zero through at least 2023 and eased market concerns about inflation risks.

The Hang Seng Index climbed 1.3 per cent to 29,405.72 at the close. The four-day advance totalling 2.3 per cent marked the longest streak since February 17 when the index peaked this year. The Tech Index jumped by as much as 2.9 per cent. Alibaba Group Holding, Sunny Optical and Meituan climbed by at least 3.7 per cent.

Baidu and Bilibili are among Chinese tech stocks making a beeline to sell shares in Hong Kong, a trend that the Hong Kong Monetary Authority (HKMA) last week said will help attract inflows and shore up the local currency.

The Shanghai Composite Index added 0.5 per cent to close at a two-week high. All major markets in Asia all rose except in Australia, with gauges in Japan and South Korea adding at least 0.6 per cent. US equities closed at record highs in overnight trading.

Stocks rose even as 10-year Treasury yield climbed to 1.71 per cent on Thursday, touching the highest level since January last year. Fed Chairman Jerome Powell said policymakers will be tolerant of inflation and the accommodative policies will stay for an extended period of time. He also dismissed the concern about higher bond yields, saying the increase was not disorderly.