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Hong Kong stocks soar ahead of expected Fed rate cut; Midea surges on debut
Hong Kong stocks jumped as local developers rallied ahead of an expected Fed rate cut, while appliance maker Midea surged on its debut
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Hong Kong stocks advanced as local developers rallied ahead of an expected rate cut from the Federal Reserve, as appliance maker Midea Group surged on its trading debut.
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The Hang Seng Index jumped 1.4 per cent to 17,660.02 on Tuesday, the biggest single-day gain since August 16, taking the gauge to a two-week high. The Tech Index gained 1.2 per cent. Mainland markets are closed for a holiday.
E-commerce giant Alibaba jumped 1 per cent to HK$82.85, food delivery platform Meituan rallied 1.7 per cent to HK$128.60 and electric vehicle company BYD rose 1.2 per cent to HK$242.80, leading gains among market heavyweights. Midea shares rose 7.8 per cent to HK$59.10 after climbing as much as 9.5 per cent in their trading debut.
CK Asset Holdings advanced 4.4 per cent to HK$32.15 and Henderson Land climbed 2.1 per cent to HK$24.30, leading gains among Hong Kong developers ahead of the Fed’s rate decision.
The city’s benchmark index has rallied for four consecutive trading days, the longest winning streak in a month, as traders shift focus to the prospect of lower rates and easier money from gloomy mainland economic data.
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Investors are now increasing their bets that the Fed will deliver a half-point rate cut on Wednesday, with the probability rising to 67 per cent from 30 per cent just a week earlier, according to CME Group’s FedWatch tool. An interest-rate cut from the US could give China more room to ease its monetary policy and increase stimulus, analysts said.
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