Hong Kong stocks rise on speculation about mortgage-rate cuts in China
Hong Kong stocks jump for a second day as mainland developers rally on speculation about mortgage-rate cuts
The Hang Seng Index added 0.8 per cent to 17,369.09 on Friday, adding to a 0.8 per cent gain on Thursday and narrowing the week’s loss to 0.4 per cent. The Tech Index gained 0.1 per cent while the Shanghai Composite Index dropped 0.5 per cent to a fresh eight-month low.
Sentiment received another boost after Bank of America backed China’s equity markets, saying yields are attractive again after a pullback. The downside is limited, it said, and their low correlation with the US market could provide a place to shelter from market risks.
“We believe China’s market could be a defensive hedge amid the current market uncertainty”, strategists including Winnie Wu said in a note on Thursday.