The Hang Seng Index rose 0.4 per cent to 15,944.63 on Thursday, adding to Wednesday’s 0.8 per cent jump. The Tech Index overturned a 0.7 per cent loss to advance 0.9 per cent, following a 2.2 per cent rally a day earlier. Financial markets in mainland China are closed for this week for the Lunar New Year holiday.
Li Ning surged 5.6 per cent to HK$20.25, and Alibaba Group gained 0.7 per cent to HK$71.30 while e-commerce rival JD.com jumped 2.4 per cent to HK$91.25. EV maker Li Auto gained 0.2 per cent to HK$119.80, while appliances maker Haier Smart Home strengthened 0.6 per cent to HK$23.75.
“China has the tools to manoeuvre and be more proactive in managing the risk” in the economy, said Liu Minyue, investment specialist for Asia and Greater China equities at BNP Paribas Asset Management. “Even if China is not fully out of the woods, we believe that risk-reward is turning more favourable.”
Bridgewater cuts more Chinese stocks while Temasek, PIF hold for turnaround
Bridgewater cuts more Chinese stocks while Temasek, PIF hold for turnaround
Investors want Beijing to do more to keep the US$380 billion stock rally going
Investors want Beijing to do more to keep the US$380 billion stock rally going
Stocks had swung earlier this week after Japan slipped into a technical recession after an official report on Thursday showed the economy unexpectedly shrank last quarter. Stronger than expected US inflation data also tempered bets on rate cuts by the Federal Reserve at the March and May meetings, according to Fed fund futures.
In Asia, regional funds remained hesitant about chasing Chinese stocks despite efforts by Beijing to stem a rout and repair market confidence, Bank of America said in a report on February 13, based on a survey from February 2 to 8 of people managing US$331 billion of assets.
Year of the Dragon: Hang Seng to attempt 20,000 points as funds seek to end pain
Year of the Dragon: Hang Seng to attempt 20,000 points as funds seek to end pain
More survey participants expected a weakening rather than a strengthening in the year ahead for the first time since the periodical survey began 17 months ago, the US bank said. Most of them were willing to sit out or avoid the market, including 15 per cent who were looking to cut risk on any bounces, the report added.
Elsewhere, major Asian markets were mixed. The Nikkei 225 in Japan advanced 1.2 per cent while the S&P ASX 200 in Australia gained 0.9 per cent and the Kospi in South Korea fell 0.3 per cent.
Additional reporting by Aileen Chuang