Hong Kong stocks reach six-week high on Fed economic assessment as Apple to Samsung buoy tech sentiment

Fed kept its key interest rate near zero and pledged to continue with steady monthly bond purchases to support the US economy

Quarterly sales from Apple, Facebook aided sentiment on some tech stocks while Samsung earnings topped consensus

2-MIN READ2-MIN

A man in a protective mask takes a selfie with the Charging Bull statue on Broadway in New York. Photo: EPA-EFE

Published: 11:20am, 29 Apr 2021Updated: 5:10pm, 29 Apr 2021

Stocks in Hong Kong and mainland China climbed on Thursday as the Federal Reserve held a more upbeat assessment on the US economy and President Joe Biden unveiled a US$1.8 trillion social-support spending plan.

The Hang Seng Index gained 0.8 per cent to 29,303.26 at the close of trading, the highest level since March 18. The index has risen 3.3 per cent this month, following a 2.1 per cent setback in March. The Shanghai Composite Index added 0.5 per cent for a third day of gains, bringing April’s winning to 1 per cent.

Insurer AIA jumped 3.7 per cent to HK$103.50, and Budweiser Brewing surged 4.3 per cent to HK$25.40 while Sinopec rose 1.8 per cent to HK$3.96. Lenovo and NetEase led some tech winners after strong reports from Apple, Facebook and Samsung.

The Fed expects to “maintain an accommodative stance of monetary policy” to support the economy even amid signs economic activity and employment have strengthened, it said. It decided to keep the key interest rate near zero and its monthly bond-buying steady.

“The Fed was more upbeat on its assessment of the economy, but it is happy to stay the course in monetary policy until there is ‘substantial further progress’,” Tai Hui, Asia chief market strategist at JPMorgan Asset Management, said in a note on Thursday. “The US economic outlook suggests substantial further progress in the next 6-9 months.”