The Hang Seng Index rose 1.7 per cent to 18,535.71 as of 10am local time. The gauge has advanced 4.1 per cent in May so far, with the possible streak of a four-month gain being the longest since February 2021. The Hang Seng Tech Index jumped 2.3 per cent and the Shanghai Composite Index added 0.5 per cent.
“The change in policy stance in the property sector is one step in the right direction, but its impact on the economy is likely to be gradual,” said Zhang Zhiwei, chief economist at Pinpoint Asset Management. “The fiscal policy needs to become more proactive to boost domestic demand. So far this year the fiscal policy has been muted, with bond issuance behind schedule.”
Apparel maker Shenzhou International advanced 4.4 per cent to HK$80.85 and electric-vehicle manufacture Li Auto rallied 4.2 per cent to HK$81.15. Tencent Holdings gained 2.8 per cent to HK$377.80 and Hong Kong Exchanges and Clearing added 2.2 per cent to HK$269.20.
Autostreets Development, which operate a trading platform for second-hand cars, jumped 53 per cent from the initial public offering price to HK$15.56 on the first day of trading in Hong Kong.
Other major Asian markets all gained after a slew of softening US economic data rekindle hopes of a reduction in the interest rate by the Federal Reserve. Japan’s Nikkei 225 climbed 0.2 per cent, while South Korea’s Kospi rose 0.3 per cent and Australia’s S&P/ASX 200 added 0.5 per cent.