Hang Seng Index up as Stimulus Hopes and Fed Rate Cut Bets Lift Tech Stocks
Hang Seng Index advanced by 0.29% on Thursday morning. Rising bets on a December Fed rate cut drove demand for Hang Seng Index-listed tech stocks, while real estate stocks struggled, pending stimulus news.
The Hang Seng TECH Index gained 0.29%, with tech giants Baidu (9888) and Tencent (0700) rallying 1.70% and 1.20%, respectively. However, the Hang Seng Mainland Properties Index dropped by 0.25%.
Mainland China markets posted morning gains, with the CSI 300 and the Shanghai Composite up 0.30% and 0.22%, respectively.
Meanwhile, the second day of China’s two-day Central Economic Work Conference got underway on Thursday morning. President Xi Jinping and senior policymakers are expected to draw stimulus plans for 2025 to bolster the Chinese economy.
On Monday, investors gained insights into potential policy maneuvers after the Politburo announced intentions to loosen monetary policy and introduce fresh fiscal stimulus measures. The stimulus measures would target domestic consumption and broad-based demand.
The announcement underscored Beijing’s determination to bolster the economy as potential US tariffs loom. US President-elect Donald Trump recently warned of 10% tariffs on Chinese goods.
On Wednesday, Natixis Asia Pacific Chief Economist Alicia Garcia Herrero commented on China’s economy and potential policy measures, saying If implemented, stimulus measures targeting consumption could ease concerns about the effect of potential US tariffs on China’s economy. Improving optimism toward the economy may boost demand for Hong Kong and Mainland China stocks.(Cay)
Source: Fxempire
