Hong Kong Stocks Hit 4-Year High as China Inflation Data Lifts Chances of a Rate Cut
Hong Kong stocks rose to a four-year high on Wednesday amid hopes that China will cut interest rates after consumer prices slipped further, alongside expectations of a similar move by the US Federal Reserve.
The Hang Seng Index advanced 1.1 per cent to 26,225.60 as of 10.12am local time, poised for the highest close since September 10, 2021. The Hang Seng Tech Index gained 2.1 per cent.
On the mainland, the CSI 300 Index and the Shanghai Composite Index both added 0.2 per cent.
China Unicom rallied 4.8 per cent to HK$10.08 and search engine operator Baidu gained 5.2 per cent to HK$111.60. Alibaba Group Holding jumped 3 per cent to HK$146.20 and Tencent Holdings advanced 1.5 per cent to HK$636.50.
Consumer prices on the mainland dropped 0.4 per cent year on year in August, according to data from the National Bureau of Statistics on Wednesday. It was steeper than the consensus estimate of a 0.2 per cent decrease. Consumer prices were unchanged in July.
Producer prices, which track prices at the factory gate, fell 2.9 per cent year, the 35th consecutive month of contraction, according to the bureau. That narrowed from a 3.6 per cent decrease in July, indicating Beijing’s effort to cut overcapacity in some green-energy industries was starting to bear fruit.
Elsewhere, Yunfeng Financial Group jumped 32 per cent to HK$5.60 after its wholly owned securities unit won approval from Hong Kong’s securities regulator to provide virtual asset dealing services.
Other major Asia-Pacific markets trended higher. Japan’s Nikkei 225 climbed 0.3 per cent, South Korea’s Kospi rose 1.5 per cent and Australia’s S&P/ASX 200 added 0.1 per cent.
Source: SCMP
