Hang Seng Continues to Rise: Hong Kong Eyes Second Weekly Gain
Hong Kong stocks rallied on Friday morning. The Hang Seng Index rose 153 points (+0.6%) to 26,785, extending its rally to a third day after Wall Street rallied overnight. Sentiment was also boosted by news from the US regarding a framework agreement with NATO regarding the Greenland "deal," as well as data showing the US economy remains quite strong.
On a weekly basis, the Hang Seng is likely to record a second consecutive weekly gain, albeit a slight gain of around 0.3%. Key support comes from signals that China's monetary policy remains loose, after the central bank stated it would maintain liquidity through various tools such as reducing the bank reserve ratio and lowering interest rates if necessary.
Market participants appeared unfazed by local data showing Hong Kong inflation rose to a six-month high of 1.4% in December, while core inflation rose to 1.2%. Stock gains were fairly evenly distributed across the consumer, technology, and financial sectors, with several standouts including Pop Mart (+6.5%), Zijin Gold (+4.0%), and Xiaomi (+2.4%). Investors are now awaiting first-quarter business sentiment data, released today, and December trade data next week. (asd)
Source: Newsmaker.id
