Hong Kong stocks rise to 2-week high as mainland markets calm
‘We are cautiously positive on Hong Kong stocks,’ analyst says, as the Fed is set to resume interest rate cuts
The Hang Seng Index gained 0.9 per cent to close at 25,633.91, its highest in two weeks. The Hang Seng Tech Index rose 1.2 per cent. The No 8 signal was downgraded to No 3 at 1.10pm.
The mainland’s markets consolidated after the wild swings last week, as the CSI 300 Index strengthened 0.2 per cent and the Shanghai Composite Index added 0.4 per cent.
JD Logistics surged 3.4 per cent to HK$13.53 as the company was added to the Hang Seng Index in the latest quarterly reshuffle. Fellow newcomers China Telecom added 0.7 per cent to HK$5.74 and Pop Mart International tumbled 7.1 per cent to HK$287.60. Search engine operator Baidu jumped 9.5 per cent to HK$106.20 on a plan to sell yuan-denominated unsecured notes on offshore markets. Alibaba Group Holding rallied 4.2 per cent to HK$137.30, while Tencent Holdings added 2 per cent to HK$617.50.
Investors are on the lookout for volatility in mainland stocks, which were jolted by the biggest sell-off in almost five months last week on concerns about rapid gains. Hong Kong stocks are increasingly correlated with China’s onshore markets, with mainland buying accounting for more than a fifth of daily transactions on the city’s exchange through the cross-border exchange link programme.