Hong Kong stocks extend 3-week winning run as Fed’s Powell signals imminent rate cut

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A cut in mid-September meeting would end the Fed’s policy-tightening cycle since the March 2022 lift-off

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People walking outside the Exchange Square in Central, Hong Kong with screens showing stock prices on January 5, 2024. Photo: Li Jiaxing

Mia Castagnonein Shanghai

Published: 10:32am, 26 Aug 2024Updated: 4:38pm, 26 Aug 2024

Hong Kong stocks rose, extending a three-week winning run, on optimism borrowing costs will decline from as early as next month, after the Federal Reserve gave its strongest hint yet on an imminent change in policy.

The Hang Seng Index rose 1.1 per cent to 17,798.73 on Monday, adding to a 1 per cent advance last week. The Tech Index gained 1 per cent while the Shanghai Composite Index was little changed.

Property developer Longfor Group gained 3.1 per cent to HK$8.75 and Wuxi Biologics surged 6.8 per cent to HK$10.96. Ping An Insurance added 1.8 per cent to HK$36.20 and sportswear maker Anta rose 3.5 per cent to HK$71.45.

Search-engine operator Baidu led winners among Chinese tech stocks, adding 1.6 per cent to HK$83.55, while Tencent climbed 1.7 per cent to HK$382. Alibaba Group Holding added 0.8 per cent to HK$83.30. Its listing status will be converted to dual-primary from August 28.

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Why investors can expect more market volatility after recent global stock sell-off

Markets received a shot in the arm after Fed Chair Jerome Powell signalled on Friday that US policymakers are ready to make a move. The Fed raised its target rate 11 times from the lift-off in March 2022 to July last year, and has kept it unchanged in nine meetings since then. Its next rate-setting meeting is on September 17-18.