Hong Kong stocks extend gains for a third day amid hopes of US interest-rate cuts on weak jobs data
The Hang Seng Index rose 1.1 per cent to 18,653.35 at 10am on Wednesday, bringing the week’s gains to 3.2 per cent. Last week, the benchmark retreated 2.8 per cent. The Tech Index added 1.7 per cent, while the Shanghai Composite Index dipped 0.1 per cent.
“The market has corrected nicely and we are now seeing a return to the bullishness that started in March,” said Nitin Dialdas, chief investment officer at Mandarin Capital Ventures in Hong Kong.
Investors feel more comfortable on the interest-rate front, as they feel rates could fall as there is less uncertainty now, he added.
US markets rose overnight after data showed job openings fell more than estimated in April to the lowest point in over three years, reviving speculation of an early cut to interest rates.
Food-delivery platform Meituan advanced 1 per cent to HK$114.60 ahead of its first-quarter earnings report this evening. Internet giant Tencent rose 1.9 per cent to HK$384.60.
Trip.com’s shares fell 2.6 per cent to HK$397.80 after it announced a US$1.3 billion convertible bond issue to fund repayment of existing debt, expand its overseas business and for working capital needs. The note has a 0.75 per cent coupon and converts to equity at a 32.5 per cent premium.
Other key Asian markets were broadly higher. Australia’s S&P/ASX 200 rose 0.3 per cent, South Korea’s Kospi advanced 1.1 per cent, while Japan’s Nikkei 225 lost 1 per cent.
