Hong Kong stocks jump as Xiaomi returns to FTSE Russell indexes while Fed tempers inflation concerns
- Xiaomi rose to highest in three months as FTSE Russell agreed to reinstate stock from next month following a US court decision
- Stocks in Asia-Pacific region also advanced as Fed speakers repeated dovish views, pledging to keep accommodative policies
“Market sentiment has improved, and we’re seeing a bit of a breakthrough in the Hang Seng Index,” said Stanley Chan, director of research at Emperor Securities.
Federal Reserve officials on Monday reiterated they expected inflation pressures to be temporary. Dovish comments from speakers including St Louis Fed president James Bullard, suggest any policy tightening is not happening any time soon, Reuters reported.
Other notable winners include WuXi Biologics, which surged 5.9 per cent to HK$116.30 while Tencent gained 4.2 per cent to HK$610. Hong Kong Exchanges and Clearing gained 5.4 per cent to HK$474.60, the most in four months. The bourse operator will keep a steady course connecting China with global markets, chief executive Nicolas Aguzin said on Tuesday.
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Financial stocks were among the best performers, with a gauge of brokerages gaining 3.9 per cent, according to Eastmoney.com. China International Capital Corporation soared by the upper trading limit of 10 per cent to 59.71 yuan.
Major markets in Asia-Pacific gained by 0.7 to 1 per cent. The S&P 500 gained 1 per cent in overnight trading, while the Nasdaq Composite rose 1.4 per cent.
Five companies debuted on Tuesday. Chinese property management firm New Hope Service Holdings edged up 0.5 per cent to HK$3.82 from its issue price of HK$3.80 in Hong Kong. Solar pump manufacturer Zhejiang Taifu rose 434 per cent to 49.98 yuan in Shenzhen, while Henan BCCY Environmental Energy soared 291 per cent to 35.90 yuan.
In Shanghai, natural gas product manufacturer Jiangxi Jovo Energy gained 24.5 per cent to 43.05 yuan and Zhejiang Provincial New Energy Investment increased 44 per cent to 5.05 yuan from their listing prices.