Hong Kong stocks post longest win streak in 2 weeks as rate-cut certainty grows
US consumer confidence dropped and retail sales remained sluggish, increasing bets on a US interest-rate cut at the Fed’s December meeting
The Hang Seng Index rose for a third day, advancing 0.1 per cent to 25,928.08 at the close. The Hang Seng Tech Index also gained 0.1 per cent.
On the mainland, the CSI 300 Index climbed 0.6 per cent and the Shanghai Composite Index fell 0.2 per cent.
Meituan rallied 5.6 per cent to HK$103.80 before its earnings card on Friday. Hong Kong property developers advanced on expectations that the city’s monetary authority would follow the Fed in lowering borrowing costs to attract homebuyers: Hang Lung Properties rose 1.9 per cent to HK$9.09, and Wharf Real Estate Investment added 0.7 per cent to HK$24.20.
Stocks have seen a reversal of sentiment after jitters about the lofty valuations of artificial-intelligence stocks and financial tightening sparked risk aversion among investors and led to a shake-up in equities and bitcoin. Expectations for a reduction in the benchmark interest rate at the Fed’s policy meeting in December grew after data showed that the US economy was cooling and a slew of Fed officials backed the loosening in the near term.