Hong Kong Stocks Trade Slightly Higher
Hong Kong stocks rose 0.3% to 25,834, driven by tech and consumer stocks, reversing the previous day's drop. Wall Street's rally and expectations of a Fed rate cut supported gains. HIBOR is expected to remain stable, but mainland stocks weakened due to poor PMIs and property slump concerns. Top performers included Akeso Inc., Trip.com, Xiaomi Corp., and Meituan.
Hong Kong equities rose 75 points, or 0.3%, to 25,834 in Thursday morning deals, reversing a sharp drop the previous day as gains mainly from tech and consumer stocks lifted risk appetite.
An extended rally on Wall Street overnight lent further support ahead of Friday’s PCE index, the Fed’s preferred inflation gauge, while markets priced in a possible rate cut next week amid softer labor market signals.
Locally, economists expect Hong Kong’s HIBOR to stay between 2-3% in the coming quarters, providing a stable backdrop for asset markets and the broader economy.
Gains were capped, however, by the third consecutive session of weakness in mainland stocks after weak November PMIs fueled concerns over a prolonged property slump and a persistently sluggish economic output, with no fresh stimulus from Beijing ahead of year-end.
Early top performers included Akeso Inc. (3.8%), Trip.com (3.1%), Xiaomi Corp. (2.6%), and Meituan (1.6%).
