Hong Kong stocks rise as rate-cut expectations fuel global risk appetite
Major Asian markets all rise after dip buying helped US stocks recover most of the losses from weak labour market data on Friday
The Hang Seng Index gained 0.7 per cent to 24,902.53 at the close. The Hang Seng Tech Index also rose 0.7 per cent. On the mainland, the CSI 300 Index climbed 0.8 per cent and the Shanghai Composite Index added 1 per cent.
Personal computer maker Lenovo Group rallied 5.1 per cent to HK$11.14 after JPMorgan Chase raised the company’s profit projection for this year by 3 per cent, citing the resilience of the core business. Bank of China (Hong Kong) advanced 4.7 per cent to HK$37.06. Tencent Holdings added 1.6 per cent to HK$559. Machine tool maker Techtronic Industries slipped 0.4 per cent to HK$94.50 before its earnings release later on Tuesday.
Major Asian markets rose after dip buying helped US stocks recover most of the losses sparked by weak labour market data on Friday. Japan’s Nikkei 225 rose 0.6 per cent, while South Korea’s Kospi rallied 1.6 per cent and Australia’s S&P/ASX 200 added 1.2 per cent.
Rates traders are now pricing in an interest-rate cut in September, with the probability rising to more than 90 per cent. A reduction would trigger a diversification from high-yielding US assets and a rotation to risk assets in Asia. It would also leave the door open for Asian central banks to loosen their monetary policies.
“The Fed is expected to make a quick pivot to a dovish stance,” said Xue Wei, an analyst at Topsperity Securities in Shanghai. “The trading window of interest-rate cuts is now coming.”