Hong Kong stocks edge higher as weak jobs data firms up rate-cut bets
Rates traders price in more than 90 per cent probability of a quarter-point reduction next week after private US labour market report
The Hang Seng Index rose 0.7 per cent to 25,935.90 at the close, after fluctuating between gains and losses in morning trading. The Hang Seng Tech Index rallied 1.5 per cent.
On the mainland, the CSI 300 Index gained 0.3 per cent and the Shanghai Composite Index slipped 0.1 per cent.
Gold producer Zijin Mining Group advanced 1.3 per cent to HK$33.20, mirroring recent gains in the price of the precious metal in the run-up to the US monetary policy meeting next week. Online travel agency Trip.com Group surged 3.9 per cent to HK$556 and smartphone maker Xiaomi added 4.4 per cent to HK$41.98.
Tempering gains, electric vehicle maker Li Auto shed 0.5 per cent to HK$69.40 on news the stock would be removed from the FTSE China index series. Industrial and Commercial Bank of China declined 1.6 per cent to HK$6.22 as the stock went ex-dividend, meaning that those buying into the stock starting on Thursday would not be entitled to an interim dividend of 0.1434 yuan.
Rates traders priced in a more than 90 per cent probability of a quarter-point reduction next week after a private report indicated that US companies cut payrolls by the most since early 2023 last month. Global stocks have recovered from sell-offs as investors grow optimistic that financial loosening will underpin elevated valuations and stretch the boom on artificial intelligence.