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Hong Kong stocks extend 3-week winning run as Fed’s Powell signals imminent rate cut

  • A cut in mid-September meeting would end the Fed’s policy-tightening cycle since the March 2022 lift-off

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People walking outside the Exchange Square in Central, Hong Kong with screens showing stock prices on January 5, 2024. Photo: Li Jiaxing
Mia Castagnonein Shanghai
Hong Kong stocks rose, extending a three-week winning run, on optimism borrowing costs will decline from as early as next month, after the Federal Reserve gave its strongest hint yet on an imminent change in policy.
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The Hang Seng Index rose 1.1 per cent to 17,798.73 on Monday, adding to a 1 per cent advance last week. The Tech Index gained 1 per cent while the Shanghai Composite Index was little changed.

Property developer Longfor Group gained 3.1 per cent to HK$8.75 and Wuxi Biologics surged 6.8 per cent to HK$10.96. Ping An Insurance added 1.8 per cent to HK$36.20 and sportswear maker Anta rose 3.5 per cent to HK$71.45.

Search-engine operator Baidu led winners among Chinese tech stocks, adding 1.6 per cent to HK$83.55, while Tencent climbed 1.7 per cent to HK$382. Alibaba Group Holding added 0.8 per cent to HK$83.30. Its listing status will be converted to dual-primary from August 28.

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Why investors can expect more market volatility after recent global stock sell-off

Why investors can expect more market volatility after recent global stock sell-off

Markets received a shot in the arm after Fed Chair Jerome Powell signalled on Friday that US policymakers are ready to make a move. The Fed raised its target rate 11 times from the lift-off in March 2022 to July last year, and has kept it unchanged in nine meetings since then. Its next rate-setting meeting is on September 17-18.

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