Fed Cut Bets and AI Optimism Bring Hang Seng to 4-Year High
The Hang Seng surged 262 points or 1% to close at 26,200 on Wednesday, rising for the fourth session to a four-year high as gains spanned all sectors. The index tracked Wall Street higher amid growing bets that recent U.S. labor market weakness will prompt the Fed to cut rates by at least 25bps next week, with upcoming inflation data set to provide final cues.
In China, the steepest CPI drop in six months during August reignited hopes for fresh government support, potentially adding to consumer goods trade-in, while producer deflation hit a four-month low as Beijing’s efforts to curb corporate price wars took hold. Property and financials outperformed following a bilateral currency swap deal between China and Europe.
Tech stocks also jumped, buoyed by optimism over AI revenues following Oracle’s strong U.S. results. Alibaba rose 0.6% on outlook optimism while Baidu HK gained 2.6% after unveiling an upgraded AI model. Conversely, Laekna Inc. slumped 12.7% on a discounted share sale.
Source: Trading Economics
