Tech firms lead Hong Kong stock advance as rate cut this month is ‘locked in’
Growing confidence in a US interest-rate cut overcomes concerns about an AI bubble and a contraction in mainland factory activity
The Hang Seng Index added 0.7 per cent to close at 26,033.26. The Hang Seng Tech Index gained 0.8 per cent. On the mainland, the CSI 300 Index advanced 1.1 per cent and the Shanghai Composite Index rose 0.7 per cent.
Among major gainers, e-commerce firm Alibaba Group Holding added 2.2 per cent to HK$154.90 while WeChat operator Tencent Holdings advanced 1.3 per cent to HK$619.50. Online travel-booking agency Trip.com rose 1.7 per cent to HK$544, while online-game provider NetEase gained 3.9 per cent to HK$222.40. Gold producer Zijin Mining Group jumped 5.3 per cent to HK$32.32, while oil producer China National Offshore Oil Corporation added 1.2 per cent to HK$21.44.
Limiting gains, blind-box toymaker Pop Mart International slumped 4.3 per cent to HK$215.20, food-delivery service provider Meituan retreated 2.9 per cent to HK$99.55, and Li Auto dropped 2.3 per cent to HK$70.30. Leading pharmaceutical firm Sino Biopharmaceutical lost 1.8 per cent to HK$6.92, and smartphone and car maker Xiaomi fell 1.8 per cent to HK$40.30.
Analysts at Goldman Sachs said a Fed rate reduction this month was “locked in”, with labour market softness and risk-management considerations making policy easing the most appropriate move.
With little economic data due before the Fed’s December meeting and markets already pricing in the shift, Goldman said the Federal Reserve would cut once this month and reassess in January after reviewing three more jobs reports. While near-term employment data could show further weakness, fiscal tailwinds were expected to support US economic growth into next year, they added.