Hong Kong stocks log second winning week on Alibaba, tech rally as China services report aids sentiment
- Stocks rose on Friday to complete the first back-to-back weekly gain in a month; Alibaba rallied for a third day from record low
- China’s services sector expanded last month from a slump in August, according to Caixin/Markit PMI index
Alibaba, the owner of this newspaper, rose 5.6 per cent to HK$155.60 while its health care information unit surged 4.4 per cent as investors scooped up beaten-down Chinese tech stocks. Tencent Holdings and Meituan jumped at least 2.1 per cent.
“The uncertainty surrounding the nature, timing, and extent of future regulations justifies lower valuations in these [tech] stocks relative to history,” BCA Research said in a report on Friday. “Thus, any bounce from oversold levels is likely to be short-lived.” Instead of adding more risk, opportunity to gain exposure, the upturn should be seen as a chance to sell, it added.
Chinese manufacturing thrown into disarray as country's electricity crisis rolls on
Elsewhere, Hong Kong developers surrendered some of their gains from Thursday. Longfor Group retreated 2.8 per cent while Country Garden and Hang Lung Properties fell at least 1.3 per cent.
Markets in Asia-Pacific advanced in reaction to news the US averted a shutdown related to debt ceiling issues. The Japanese and Australian benchmark rose 1.3 per cent and 0.9 per cent respectively. South Korean equities were down 0.1 per cent.