Hang Seng Rises After Hitting Two-Week Peak
Hong Kong stocks rallied in Wednesday morning trading, with the benchmark index rising 357 points, or 1.4%, to 25,324. This increase extended the rally into a second session and brought the market to a two-week high, with broad-based gains across most sectors.
Positive sentiment came from Wall Street, which posted solid gains overnight after weaker US inflation data. The data reinforced speculation that the Federal Reserve could cut interest rates in September to support the improving labor market.
In mainland China, markets also rallied to a three-year high. The main boost came from the extension of the trade truce with the US, which helped prevent triple-digit tariffs on a number of Chinese exports and eased supply chain concerns.
Domestically, Beijing launched a one-year plan to subsidize interest rates on personal consumer loans. The scheme assigns the central government 90% of the costs and provincial governments 10%, with the aim of boosting household spending and supporting demand recovery.
In corporate news, China Evergrande announced its Hong Kong shares would be delisted on August 25th following a stock exchange decision. Meanwhile, blue-chip stocks rallied: Tencent Holdings jumped 2.1% to a four-year high thanks to its attractive valuation, while WH Group (+5.2%), Innovent Biologics (+3.8%), and Chow Tai Fook (+1.9%) also posted strong gains. (alg)
Source: Newsmaker.id
