Hong Kong stocks advance as city removes all travel restrictions ahead of US inflation data, Fed rate decision

Hong Kong scraps all restrictions on inbound travellers who test negative, allowing them to enter public venues upon arrival

US inflation probably slowed to 7.3 per cent in November from 7.7 per cent a month earlier, according to economist estimates

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Pedestrians walk past a stock ticker displaying the Hang Seng Index in Hong Kong on October 11, 2022. Photo: EPA-EFE

Published: 10:21am, 13 Dec 2022Updated: 4:28pm, 13 Dec 2022

Hong Kong stocks rose after the city removed all restrictions on inbound travellers by allowing them access to public venues up on arrivals. A US report that is expected to show that inflation slowed last month also buoyed sentiment.

The Hang Seng Index climbed 0.7 per cent to 19,596.20 at the close. The Hang Seng Tech Index rose by the same amount and the Shanghai Composite Index slipped 0.1 per cent.

Meituan gained 2.1 per cent to HK$179, and Tencent advanced 0.3 per cent to HK$318.40. Macau casino operator Sands China rose 4.3 per cent to HK$26.55, and Galaxy Entertainment added 2.4 per cent to HK$52.60. Chip maker Semiconductor Manufacturing International Corp surged 9.7 per cent to HK$18.18 on a media report that China is working on a 1 trillion yuan (US$143.3 billion) package to support the industry. Guangzhou R&F Properties tumbled 12 per cent to HK$2.15 after founder Zhang Li was arrested in London for offering bribes to secure a contract in the US for affiliate Z&L Properties.

Starting Wednesday, Hong Kong will scrap an amber health code that currently bans travellers who test negative from entering certain places of business, such as restaurants, within three days of arriving in the city, Chief Executive John Lee Ka-chiu said on Tuesday.

Expectations that decelerating US inflation will bolster the case for the Federal Reserve to roll back interest-rate increases also buoyed sentiment. American consumer prices probably rose 7.3 per cent in November, slowing from a 7.7 per cent increase a month earlier, according to the estimates of economists tracked by Bloomberg.

The Fed is widely expected to raise benchmark borrowing costs by 50 basis points in its rate-decision meeting on Thursday, halting a run of four straight 75-basis-point increases. Among the 105 economist polled by Bloomberg, all but one predict an increase by 50 basis points after Fed Chair Jerome Powell pivoted to a dovish tone in early December.