The Hang Seng Index rose 2.5 per cent to end the day at 18,207.13. 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 rose 4.45 per cent, while China’s onshore stock exchanges are closed for the week.
HSBC, the city’s biggest bank, rose 3.4 per cent to HK$69.25. Index heavyweight and tech giant Tencent rose 3.8 per cent to HK$360.40. Insurance stocks were also higher, with AIA rising 2.7 per cent to HK$59.35 and Ping An advancing 5.7 per cent HK$38.
“Banks and insurance companies benefit from higher interest margins when rates are elevated,” said Nitin Dialdas, CIO at Mandarin Capital, who added that investment flows in the broad market were being driven by Beijing’s economic focus at a time when stock market valuations are cheap. “A shift is taking place from west to east,” he said.
Hong Kong keeps rate at 5.75% as Fed watches over US inflation
Hong Kong keeps rate at 5.75% as Fed watches over US inflation
“The good news was that the Fed does not appear to be leaning towards a potential hike, despite a run of stronger macro indicators, including some which measure inflation,” said Tim Waterer, chief market analyst at Kohle Capital Markets.
Other major Asian markets were little changed. Japan’s Nikkei 225 edged down 0.1 per cent, and Australia’s S&P/ASX 200 rose 0.23 per cent. South Korea’s Kospi closed 0.31 per cent lower.