Hong Kong stocks join global rally after US Federal Reserve signals end to interest rate rises

Hong Kong’s benchmark gauge gained 1.1% on Thursday after the Federal Reserve left interest rates unchanged at its latest meeting

The city’s de facto central bank kept its rate unchanged in lockstep with the US, bringing some relief to local businesses and homeowners

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Hong Kong stocks joined a global rally after the Federal Reserve signalled an end to its aggressive hikes. Photo: Mia Castagnone

Published: 10:20am, 14 Dec 2023Updated: 4:51pm, 14 Dec 2023

Hong Kong stocks joined a global rally after the Federal Reserve left interest rates unchanged at its latest meeting and signalled an end to its aggressive hikes.

The Hang Seng Index gained 1.1 per cent to 16,402.19 at the close of Thursday trading, pulling back from an earlier gain of as much as 2.2 per cent. The Tech Index added 0.3 per cent while the Shanghai Composite Index slipped 0.3 per cent.

Sun Hung Kai Properties surged 3.4 per cent to HK$80.60, Henderson Land jumped 3.3 per cent to HK$23.05 and HSBC added 0.7 per cent to HK$61, leading gains among local property developers and banks. Electric vehicle maker BYD added 0.9 per cent to HK$205.20 and e-commerce giant JD.com climbed 0.9 per cent to HK$98.80.

Limiting Thursday’s gains, Tencent declined 0.2 per cent to HK$306.40, Alibaba lost 0.4 per cent to HK$69.10 and Meituan weakened 0.5 per cent to HK$81.75.

The US Federal Reserve left its key policy rate unchanged in the 5.25 per cent to 5.5 per cent range overnight, the fourth pause since it began lifting borrowing costs in March 2022. Officials lowered the median interest rate projection for 2024, with the midpoint forecast to decline by three-quarters of a percentage point from the current range.

Hong Kong’s de facto central bank kept the rate unchanged in lockstep with the US, avoiding further pressure on local businesses and homeowners.