Hong Kong stocks gain the most in 2 weeks after Fed’s Powell signals rate cut next month

Hong Kong stocks gain the most in 2 weeks after Fed’s Powell signals rate cut next month

Hong Kong stocks rose on Monday after US Federal Reserve chair Jerome Powell signalled the possibility of a rate cut next month and Shanghai relaxed its home-purchase policies.

The Hang Seng Index added 2 per cent to 25,837.65 at 2pm local time, the biggest gain in two weeks. The Hang Seng Tech Index rose 3 per cent. On the mainland, the CSI 300 Index gained 1.3 per cent, while the Shanghai Composite Index strengthened 0.8 per cent, to hit a fresh 10-year high.

Mining firm Zijin Mining surged 6.8 per cent to HK$24.44. Search-engine leader Baidu added 6.3 per cent to HK$91, online games provider NetEase climbed 6 per cent to HK$217.40. E-commerce giant Alibaba Holding Group climbed 5.7 per cent to HK$124.60 and peer JD.com advanced 4.4 per cent to HK$126.70.

Mainland developers surged after Shanghai eased its property-buying policies, joining the Beijing municipal government’s efforts to boost sluggish home sales. Under the new rules, residents in the mainland’s financial capital can now own an unlimited number of flats outside the city’s outer ring road, an area that contains two-thirds of Shanghai’s housing supply.

Longfor Group surged 5.5 per cent to HK$11.27, while China Vanke jumped 10.3 per cent to HK$5.70 and China Resources Land advanced 2 per cent to HK$32.12.

Limiting gains, Carmaker Geely Automobile Holdings slipped 1.4 per cent to HK$19.70, while handset components manufacturer BYD Electronic fell 1.1 per cent to HK$39.06.

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