Hong Kong Stocks Rise on Speculation About Mortgage-Rate Cuts in China
Hong Kong stocks jumped for a second day to a one-week high as mainland developers rallied on speculation about mortgage-rate cuts.
The Hang Seng Index added 1.3 per cent to 17,469.93 as of 10.05am local time, adding to a 0.8 per cent gain on Thursday. The Tech Index gained 1 per cent while the Shanghai Composite Index added 0.3 per cent to climb out from eight-month low.
Food deliver platform Meituan added 2.2 per cent to HK$125, e-commerce firm Alibaba Group Holding added 1.4 per cent to HK$84.35 and insurer Ping An jumped 1.7 per cent to HK$35.45, leading gains among index heavyweights. Longfor added 3.4 per cent to HK$8.05 while peer China Resources Land rallied 3.1 per cent to HK$20, leading a 2 per cent gain among mainland developers.
China could cut rates on outstanding mortgages by up to 50 basis points as early as this month to lower borrowing costs and spur consumption, Bloomberg reported on Friday.
Friday's gain helped the Hang Seng Index to erase losses from earlier in the week. It also helped to narrow September's losses to 3 per cent. Optimism about a rate cut from the US Federal Reserve and increasing southbound inflows after Alibaba's inclusion in the Stock Connect programme helped shore up the markets.
Other Asian stocks were mixed on Friday. Japan's Nikkei 225 lost 0.5 per cent, while South Korea's Kospi added 0.1 per cent and Australia's S&P/ASX 200 added 0.3 per cent.
Source : SCMP
