Hong Kong stocks bounce back from 6-week lows on US disinflation relief; EV makers soar
- Chinese electric-vehicle makers rally after tariffs imposed by the European Commission were milder than expected
The Hang Seng Index rose 1 per cent to 18,112.63 at the close. It snapped a three-day losing streak, rebounding from the six week-lows stuck on Wednesday. The Hang Seng Tech Index gained 1.3 per cent but the Shanghai Composite Index dipped 0.3 per cent.
The S&P 500 index notched another record overnight to top 5,400 for the first time after the Federal Reserve’s dot plot projection indicated four interest rate cuts in 2025, more than the three previously outlined. Sentiment also got a lift from official data that showed US core consume price index (CPI) increased at its slowest pace in more than three years in May.
“Soft CPI puts the Fed back in the driver’s seat to steer towards a precautionary cut later this year to ensure recession remains remote,” said Ashwin Alankar, head of global asset allocation at Janus Henderson Investors. “Softness is supportive of a pre-emptive cut rather than a pivot in Fed policy towards accommodation.”
