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Hong Kong stocks rocket on rate hopes
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A pedestrian walks past an electronic board showing numbers for the Hang Seng Index in Hong Kong, China, on Sept. 27, 2022. (AFP/Peter Parks)
H
ong Kong stocks soared Wednesday as investors returned from a public holiday to play catch-up, with a global rally fueled by easing concerns about central bank interest rate hikes.
The Hang Seng Index climbed 5.90 percent, or 1,008.46 points, to 18,087.97, having piled on more than six percent at one point.
Mainland Chinese markets are closed all week for a national holiday.
The surge came in line with an advance across world markets after months of hefty losses and following data indicating the US economy was showing signs of slowing, allowing the Federal Reserve to take its foot off the gas.
Tech firms were among the biggest winners, with e-commerce titan Alibaba rising more than eight percent, Tencent up nearly six percent and NetEase more than eight percent higher. JD.com and XD each soared more than 10 percent.
The Hang Seng has endured a tough year, losing about a quarter of its value, as Hong Kong was hit by the impact of Covid restrictions at home and lockdowns in China that hammered the world's number two economy.
But there has been some upbeat news of late, with city leaders easing strict hotel quarantine rules for incoming travelers, fueling hopes for the economy.
That has helped tourism-linked firms to rally, particularly Macau casinos, with Wynn Macau up more than seven percent, Sands China up 5.5 percent and MGM China close to five percent higher.
Airline Cathay Pacific jumped 1.5 percent.
However, analysts remained cautious ahead of a key meeting of the Chinese Communist Party this month that is expected to see Xi Jinping handed another five-year term as president.
"We are not moving in as yet since our last move into Hong Kong-listed stocks in the third quarter didn't deliver," said Kerry Goh, of Kamet Capital Partners.
"So we are waiting and watching just like everybody else for the 20th Party Congress for new catalysts."
