Hong Kong stocks charge ahead in rally led by technology, banking sectors; China policy support hopes swirl
The Hang Seng Index rose 1.1 per cent to 18,413.79 at the noon trading break. The benchmark has risen 20 per cent from a January low and has now entered what is defined as bull-market territory. The Hang Seng Tech Index added 2 per cent after Apple’s board approved an additional US$110 billion in share repurchases.
Index heavyweights Tencent and Alibaba topped the turnover list. Tencent rose 0.8 per cent to HK$363.20 and Alibaba added 3.5 per cent to HK$78.75.
China’s onshore stock exchanges are closed for the week, but sentiment remains upbeat after China’s top policymakers signalled further support to economic growth at the Politburo meeting on April 30.
“The April Politburo meeting statement reflected a strong commitment to stimulate growth, especially in the discussion on potential property destocking measures,” said BNP strategists in a note published on Friday. “The tone of the statement was a clear ramping up from the measured approach outlined in the National People’s Congress, a precondition for a bullish equity stance as highlighted in our Q2 2024 Global Outlook.”
Banking shares extended gains, with China Construction Bank rising 0.8 per cent and Industrial and Commercial Bank of China 1.2 per cent higher. Insurance stocks also rose, with AIA jumping 3 per cent to HK$61.15 and Ping An rising 2.4 per cent HK$38.90.
“We think Powell unequivocally managed to downplay the possibility that the next move by the Fed is that of a rate hike,” said Nomura strategist Chetan Seth. “This would come as a relief for stocks.”
Other major Asian markets were broadly higher. Australia’s S&P/ASX 200 rose 0.5 per cent and South Korea’s Kospi edged up 0.3 per cent.
