Hong Kong Index Continues Gain
Hong Kong stocks rose 72 points, or 0.4%, to 19,298 in early trade on Wednesday, marking a second session of gains. Modest gains in U.S. stock futures boosted sentiment after producer inflation came in lower than expected in December, ahead of today’s CPI report. The Hang Seng pulled away from its lowest level in nearly four months after China’s top securities regulator and the People’s Bank of China pledged to stabilize market volatility.
The central bank added that it would also help high-quality corporate bond listings and issuance in Hong Kong, and increase foreign exchange reserves allocated to assets in the city. Adding to the positive mood was a surge in new yuan loans in December after slumping to the lowest since 2012 in November. However, further gains were capped by caution ahead of key data from China in the coming days, particularly Q4 GDP figures and a series of activity readings for December. Semicon Manufacturing jumped (6.6%), along with SenseTime Group (3.0%), Kingsoft Corp. (2.7%), and Tencent Holdings. (2.4%).(ayu)
Source: Trading Economics