Hang Seng Jumps 1.4% at Close
The Hang Seng surged 238 points, or 1.4%, to close at a 2-week high of 17,660 on Tuesday, marking its 4th session of gains, with all sectors participating in the rally.
The property index jumped over 2% amid confidence that a series of US rate cuts, expected to begin on Wednesday, will boost property purchases in Hong Kong. Borrowing costs in the city are tied to the US due to its currency peg. Among builders, CK Asset rose 4.4%, while competitors New World and Henderson Land gained 5.5% and 1.9%, respectively. Financials, consumer stocks, and tech also saw strong wins ahead of a monthly review of key lending rates from the PBoC Friday.
Meanwhile, Hong Kong is preparing regulations for the use of AI in finance, with an official statement expected around late October. However, some traders were hesitant to open new positions, as Hong Kong markets will be closed Wednesday for a holiday, unlike Chinese markets, which will resume trading that day following closures on Monday and Tuesday.
Source: Trading Economics