Hong Kong stocks jump as authorities rule out lockdown in Beijing, Federal Reserve assurance on rate increases
- Tech giants including Alibaba and JD.com push Hang Seng Index higher
- Beijing officials deny the city will be subjected to a lockdown despite imposition of tighter curbs in some districts
Hong Kong stocks rose by the most in two weeks as Beijing denied the city will be locked down, while Shanghai aims to contain the coronavirus outbreak by mid-May. Gains mirrored Asian markets after the Federal Reserve ruled out more aggressive interest rate increases.
The Hang Seng Index gained 2.7 per cent to 19,898.77 at the close of Friday trading, paring the loss for the week to 0.5 per cent. The Tech Index climbed 4.5 per cent, while the Shanghai Composite Index rose 1 per cent.
Alibaba Group Holding, the owner of this newspaper, advanced 2.8 per cent to HK$82.20. Meituan soared 6.8 per cent to HK$167.60 and Tencent Holdings rose 3 per cent to HK$354.40. Geely Automobile jumped 8.2 per cent, while Country Garden and China Resources Land strengthened at least 6 per cent.
“The improvement in Shanghai is good for manufacturing stocks,” said Paul Pong Po-lam, managing director of Pegasus Fund Managers. “Bad news for the short term has already been reflected. [In the mainland], A-shares are bottoming and it is a good sign to stabilise Hong Kong stock markets, laying down the foundation for hopefully a better rebound.”
The Hang Seng Index saw 62 out of its 66 constituents advance on Friday. But despite the gains, the benchmark has fallen in five out of the past six weeks as it navigates turbulence between China’s Covid-induced economic slowdown and a global regime of tighter monetary policy. It has slumped 15 per cent this year with US$530 billion of market value wiped out.