HSBC, Alibaba, BYD power Hong Kong stocks to best gain since March as markets temper US rate-hike bets
- Stocks caught up with overnight gains in global markets as traders pared US rate-hike bets for 2023 following a weak manufacturing report
- Alibaba, HSBC and BYD paced rally as the Hang Seng Index clawed its way up from the lowest level since October 2011
The Hang Seng Index jumped 5.9 per cent to 18,087.97 at the close of Wednesday trading from the level on Monday, the biggest gain since mid-March. The Tech Index soared 7.5 per cent. Asian currencies recouped losses as the US dollar retreated. Financial markets in mainland China are closed for the entire week.
Tech stocks fuelled the rally. Alibaba Group Holding surged 8.4 per cent to HK$84.20, NetEase jumped 7.9 per cent to HK$127 and Tencent advanced 6.1 per cent to HK$280. Carmaker BYD rocketed 9.3 per cent to HK$209.80 after reporting record sales in September.
“The market has slumped sharply in the past few weeks, so the weakening US dollar and potentially [slower] rate hikes have remarkably lifted the mood,” said Dickie Wong, executive director at Kingston Securities.
A private report on Monday showed US factory activity slipped in September to a more than two-year low. A US job report later this week may show a drop in employment openings, with a cooling labour market potentially further dampening bets on Fed tightening pace.