Hong Kong stocks jump for a second day as typhoon warning forces exchange to halt trading
- The Hang Seng Index closed 2.4 per cent higher on Wednesday, with the afternoon trading session cancelled because of a typhoon alert
- Investors ignore the prospect of further rate increases by the Federal Reserve
All but four of the 73 index members advanced. Alibaba Group Holding rose 2 per cent to HK$67.40, Tencent Holdings gained 1.4 per cent to HK$230.60 and BYD added 4 per cent to HK$190.90. Macau casino operators surged, with Sands China soaring 12 per cent to HK$17.12 and Galaxy Entertainment adding 6.7 per cent to HK$41.60. The surge followed a report that more Chinese cities are adopting inhaled vaccines, prompting speculation that China will relax its zero-Covid policy.
“These are technical rebounds as the market has fallen,” said Kenny Ng Lai-yin, a strategist at Everbright Securities International. He attributed the rally to rumours about China’s reopening and that the market was awaiting concrete developments.
“The rebounds this year have often turned out to be short-lived, and the performance is likely to remain weak in the short term as rate hikes will continue to put pressure on the market,” he said.
More than 200 international and regional leaders from around 120 global financial institutions are now in the city to attend the summit. “Hong Kong is back” and banks should “get in front” of the queue for business, Chief Executive John Lee Ka-chiu said in his opening speech.
Elsewhere, the Fed is set to extend its policy lift-off with another 75-basis-point increase later tonight, after a US employment report on Tuesday showed the labour market is still strong.
Asian stocks were flat. The Nikkei 225 in Japan and Kospi in South Korea were little changed, while the benchmark index in Australia rose 0.1 per cent.