The Hang Seng Index closed 0.8 per cent higher at 17,230.59 on Thursday, the biggest increase in about a week, after rallying as much as 2.1 per cent. The Tech Index gained 1.6 per cent, while the Shanghai Composite Index erased gain to lose 0.5 per cent.
Alibaba Group jumped 1.1 per cent to HK$80.50 and rival e-commerce platform operator JD.com added 0.7 per cent to HK$99.40, while Tencent rose 0.6 per cent to HK$288.60. Henderson Land led home builders higher, surging 4.6 per cent to HK$21.50, while Sun Hung Kai Properties climbed 2.1 per cent to HK$82.80.
Bank of China (Hong Kong) gained 0.7 per cent to HK$21, Hang Seng Bank traded 1.4 per cent higher at HK$90.60, while China Construction Bank strengthened 0.4 per cent to HK$4.49. HSBC erased an earlier drop to end with a 0.2 per cent gain at HK$57.
“A near-term relief rally is likely on the cards, especially driven by tech [and other] areas of the market that tend to be more correlated to moves in US bond yields,” said Chetan Seth, Asian equity strategist at Nomura. “It does not appear to us that this will be a breakout rally.”
The Hang Seng Index has declined almost 13 per cent this year, making it the worst performer among major global stock indices, according to Bloomberg data. Concerns about higher rates have clouded the outlook for property developers, while pushing overleveraged ones into debt distress.
Hong Kong keeps base rate steady at 5.75% to spur businesses
Hong Kong keeps base rate steady at 5.75% to spur businesses
The Fed left the key rate unchanged at a 22-year high of 5.25 to 5.5 per cent overnight, as inflation slowed and higher Treasury yields effectively tightened financial conditions. In lockstep, the Hong Kong Monetary Authority maintained its base rate at 5.75 per cent, a 16-year high.
“We expect the Fed to remain on hold going into next year,” said Ray Sharma-Ong, investment director for multi-asset solutions at abrdn, a UK-based money manager. This will reduce market volatility stemming from policy uncertainty and enable equity markets to better price assets based on corporate fundamentals, he added.
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HKMA to mark 30th anniversary with global financial heavyweights summit, says CEO Eddie Yue
HKMA to mark 30th anniversary with global financial heavyweights summit, says CEO Eddie Yue
The Fed has hiked rates 11 times since the “policy lift-off” in March 2022, the most aggressive tightening in four decades to tame inflation. Although officials did not take future increases off the table, they said they would proceed carefully as financial conditions have “tightened significantly” in recent months.
Meanwhile, stock gains narrowed toward closing as consumer stocks tumbled amid renewed concerns about weak spending. Yum China slumped 1.7 per cent to HK$350 after third-quarter earnings underwhelmed. Food delivery platform Meituan lost 0.9 per cent to HK$108 and hotpot restaurant chain Haidilao dropped 1.2 per cent to HK$16.86.
Two stocks debuted on Thursday. Guoquan Food Shanghai closed flat at HK$5.98 on its first day of trading in Hong Kong, while Hangzhou Reformer Holding surged 108 per cent to 16 yuan in Beijing.
Other key Asian markets advanced. Australia’s S&P/ASX 200 rose 0.9 per cent and the Nikkei 225 Index in Japan added 1.1 per cent, while South Korea’s Kospi jumped 1.8 per cent.