The Hang Seng Index rose 1.9 per cent to 25,439.91 at the noon break, the most since a 2.1 per cent gain on June 24. The gauge was also poised for its highest close in two weeks.
The Hang Seng Tech Index jumped 2.4 per cent. On the mainland, the CSI 300 Index climbed 0.9 per cent and the Shanghai Composite Index added 0.6 per cent.
Chinese pork processor WH Group surged 5.6 per cent to HK$8.31 after first-half operating profit increased 10.4 per cent from a year earlier. China Unicom gained 3 per cent to HK$10.50 after net income rose 5.1 per cent in the first six months. Tencent Holdings climbed 3.1 per cent to HK$577, with the social media giant set to report a 7 per cent year-on-year increase in second-quarter net income later today. Alibaba Group Holding advanced 4.4 per cent to HK$121.70 and HSBC Holdings added 1.4 per cent to HK$101.60.
The S&P 500 and the Nasdaq 100 both hit record highs overnight after US inflation data came in line with economists’ projections, bolstering hopes that the Federal Reserve would cut interest rates next month amid signs of a cooling jobs market. The probability of a 25-basis-point rate cut next month rose to 94.3 per cent from 85.9 per cent before the data release, according to CME Group.
“The market is treating a September cut as a done deal,” said Stephen Innes, a managing partner at SPI Asset Management in Bangkok. The inflation print “paints a neon arrow pointing at 25 basis points, and keeps a side door ajar for a full 50 basis-point [cut] if the jobs tape keeps unravelling”.
