Hang Seng Finally Rebounds, Signaling a Turnaround?
Hong Kong stocks rose about 79 points, or 0.3%, to 25,907 on Thursday morning, snapping a four-day losing streak. This gain came after Asian stock markets rallied following Nvidia's strong earnings report, which again eased concerns about the valuation of AI-themed stocks. Sentiment was also supported by the People's Bank of China's (PBoC) decision to hold its benchmark lending rate at an all-time low for the sixth consecutive day, signaling a continued loose and supportive policy stance for growth.
Financial and property stocks were the main drivers of the index's gains. Both were helped by strong investor interest in China's 4 billion euro-denominated bond issuance, indicating continued strong global investor confidence in Chinese assets. However, gains in the Hang Seng Index remained limited as market participants awaited the release of Hong Kong's October inflation data, due out today, after months of relatively stable inflation.
Meanwhile, geopolitical tensions remain a concern. Beijing reportedly plans to suspend seafood imports from Japan, exacerbating tensions after Japanese Prime Minister Sanae Takaichi stated that Tokyo could respond militarily if China attacks Taiwan. At the individual stock level, Lenovo rose 3% on the back of a solid third-quarter earnings report amid the AI trend. Other stocks that also gained were China Hongqiao Group (3.1%), Kuaishou Tech (2.7%), and SMIC (1.9%). (az)
Source: Newsmaker.id
