Hong Kong stocks rise to 3-month high on rate-cut hopes, bets on fund inflows
No luck for two market debutants CaoCao and XJ Electrics as steep losses in both stocks made it a day to forget
The Hang Seng Index gained 1.2 per cent to 24,474.67 on Wednesday, the highest level since March 19. The Hang Seng Tech Index also advanced 1.2 per cent. On the mainland, the CSI 300 Index added 1.4 per cent while the Shanghai Composite Index rose 1 per cent.
Alibaba Group Holding jumped 2.5 per cent to HK$115.50 and Meituan climbed 1.4 per cent to HK$131.80. Hang Lung Properties surged 8.8 per cent to HK$7.55 and Henderson Land Development appreciated 4.6 per cent to HK$28.75 on optimism that lower borrowing costs will support home sales.
Stocks in Hong Kong and around the region strengthened after the Nasdaq 100 surpassed its previous all-time high in February. Fed chair Jerome Powell struck a balanced tone on policy outlook in his testimony to US lawmakers, and traders stepped up bets on a rate cut in September. Oil prices tumbled after Israel and Iran agreed to a ceasefire.
“The earlier rate cut could come next month and that’s a boon for market sentiment,” said Wang Yi, an analyst at Great Wall Securities. “Tech stocks are expected to benefit most from the improved market mood.”