Hong Kong stocks hit week-high amid rising hopes of Fed rate cut
Xiaomi and Alibaba among top gainers as more Federal Reserve officials come out in support of an interest-rate cut next month
The Hang Seng Index rose 0.7 per cent to 25,894.55 at the close, extending a 2 per cent gain on Monday. The Hang Seng Tech Index gained 1.2 per cent.
On the mainland, the CSI 300 Index climbed 1 per cent and the Shanghai Composite Index added 0.9 per cent.
Xiaomi, the maker of smartphones and electric vehicles, rallied 4.3 per cent to HK$40.34 after founder Lei Jun committed at least HK$100 million (US$13 million) to boosting his stake in the company. Alibaba Group Holding gained 2.1 per cent to HK$157.80 before its quarterly result later on Tuesday. Affiliate Alibaba Health Information Technology advanced 4.4 per cent to HK$5.98. Search-engine operator Baidu jumped 4.6 per cent to HK$116.90, rising for a second day after a rating upgrade by JPMorgan Chase.
Federal Reserve governor Christopher Waller said on Monday that a reduction in borrowing costs was still on the cards in December. New York Fed president John Williams made a similar comment, saying that he saw the possibility of a near-term cut. San Francisco Fed president Mary Daly also backed a cut, she said in an interview on Monday.
The Fed will convene on December 11 for a rate decision, even as the world’s biggest central bank had no access to some crucial US data on inflation and the jobs market because of delayed releases owing to the unprecedented 43-day government shutdown.