Hong Kong Rally, But Still Wary of China
Hong Kong stocks rose around 201 points (0.8%) to 25,733 in Thursday's morning session, extending their gains for a second day. This rise was driven by positive sentiment from Wall Street after the Fed cut interest rates in line with market expectations. Traders remain hopeful of further easing, although the US central bank has signaled a temporary pause. In Hong Kong, the Hong Kong Monetary Authority followed the Fed's lead and cut interest rates to their lowest level since October 2022, keeping Hong Kong's monetary policy in line with the US. Gains were broad-based, particularly in the financial, consumer, and technology sectors, with stocks such as Prada, Pop Mart, China Taiping, and Techtronic also gaining ground.
However, the euphoria has yet to dissipate completely as the market remains cautious about data from China and Hong Kong itself. Market participants are awaiting the release of China's new credit data for November, after new loans in yuan fell sharply in October and missed estimates, indicating still weak consumer demand. Investors are also awaiting Hong Kong's third-quarter industrial output data and November unemployment data to gauge the region's economic strength. So, even though the index rose and short-term sentiment improved due to the interest rate cut, the market remains cautious because the economic fundamentals are not yet fully convincing. (az)
Source: Newsmaker.id
