Hong Kong stocks snap 4-day decline as US jobs data fuels Fed rate-cut bets
stocks started the week's trading on a solid note on Monday, as the benchmark gauge ended a four-day streak of declines on rising hopes of a US interest-rate cut after data showed a worsening US labour market.
The Hang Seng Index rose 0.3 per cent to 24,586.60 as of 10.14am local time. The Hang Seng Tech Index gained 0.7 per cent. On the mainland, the CSI 300 Index slipped 0.1 per cent, and the Shanghai Composite Index added 0.1 per cent.
China Resources Land advanced 2.5 per cent to HK$29.32 and Zijin Mining rallied 2.5 per cent to HK$21.68 on a flight to gold in haven trade. Limiting the gains, electric-vehicle maker BYD tumbled 3.4 per cent to HK$112.80 and China Life Insurance lost 2.3 per cent to HK$21.64. Alibaba Group Holding fell 1.2 per cent to HK$115.50.
Some analysts are now anticipating the Federal Reserve may cut rates by half a point in September, double the regular reduction amount. The US central bank stood pat on the borrowing cost last week for a fifth meeting in a row.
US stocks tumbled on Friday after official data showed that job creation fell far short of the consensus estimates in July, while unemployment increased. The Bureau of Labor Statistics also revised downward the data on the jobs market for the previous two months, prompting President Donald Trump to fire Erika McEntarfer, the commissioner of the agency.
Investors are struggling to search for new catalysts that could underpin the rally that drove the Hang Seng Index to its highest in three and a half years last month. A Politburo meeting that concluded last week failed to impress the market, with no hints of additional stimulus measures on the horizon.
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