Hong Kong stocks log weekly gain as inflation, job reports calm nerves, SMIC paces rally

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Local stocks capped a winning week, aided by better than expected China inflation data and US job market outlook

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People walking past a stock screen outside a bank along the Jordan Walk in Hong Kong in March 2024. Photo: Eugene Lee

Zhang Shidongin Shanghai

Published: 10:49am, 9 Aug 2024Updated: 5:00pm, 9 Aug 2024

Hong Kong stocks rose for a third day to cap a winning week after better-than-expected reports on Chinese inflation data and US jobs. Goldman Sachs said recent global rout may have passed its worst, while safe-harbour appeal boosted local market outlook.

The Hang Seng Index climbed 1.2 per cent to 17,090.23 on Friday, completing a 0.9 per cent gain for the week. The Tech Index surged 2.1 per cent while the Shanghai Composite Index slipped 0.3 per cent. Most Asian equity markets traded higher.

China’s biggest chip maker SMIC rallied 4.9 per cent to HK$16.58 after its second-quarter earnings beat consensus estimates. Alibaba Group Holding gained 1.7 per cent to HK$77.85 and Baidu rallied 2.8 per cent to HK$83.20, while Tencent added 0.5 per cent to HK$370.

05:46

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

Consumer prices in mainland China rose 0.5 per cent in July from a year earlier, accelerating from a 0.2 per cent gain in June, the statistics bureau said on Friday. Economists had predicted a 0.3 per cent rise. Producer prices, however, slipped 0.8 per cent, marking a 22nd month of decline.

“With low inflation and weak credit activity, domestic factors continue to favour further monetary policy easing,” said Lynn Song, an economist at ING. “We continue to look for at least one more rate cut this year, with the potential for more if global rate cuts accelerate.”