HK stocks surge on ceasefire and rate cut hopes
HK stocks surge on ceasefire and rate cut hopes
The Hang Seng Index ended trading for the day up 297.60 points, or 1.23 percent, at 24,474.67. File photo: AFP
Shanghai stocks closed at a more-than-six-month high on Wednesday while Hong Kong ended at its loftiest since March, boosted by a ceasefire between Israel and Iran, as well as some hopes of an earlier-than-expected US Federal Reserve rate cut.
In Hong Kong, the benchmark Hang Seng Index ended trading for the day up 297.60 points, or 1.23 percent, at 24,474.67.
The Hang Seng China Enterprises Index climbed 1.13 percent to end at 8,859.29 while the Hang Seng Tech Index jumped 1.15 percent to close at 5,359.02.
On the mainland, the benchmark Shanghai Composite Index closed up 1.04 percent at 3,455.97, its highest close since December 12.
The blue-chip CSI300 index was up 1.44 percent at 3,960.07 points, the highest closing level since March 20.
The Shenzhen Component Index closed 1.72 percent higher at 10,393.72.
The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, gained 3.11 percent to close at 2,128.39.
The gains came after a ceasefire brokered by US President Donald Trump between Iran and Israel appeared to be holding, a day after both countries signalled that their air war had ended, at least for now.
"Tensions between Iran and Israel will be eyed as financial markets remain hopeful that a delicate ceasefire between the two nations would hold," analysts at UOB said in a note.
Brokerage shares led the gains, with CSI securities sub-index rallying 5.48 percent. Defence shares were also among top winners, with the sub-index jumping 3.68 percent.
Meanwhile, Premier Li Qiang said on Wednesday that he was confident the country could maintain a "relatively rapid growth rate" and transition from a manufacturing-led economy to a consumer-driven one.
US Federal Reserve chairman Jerome Powell said on Tuesday that higher tariffs could begin raising inflation this summer, a period that will be key to the US central bank considering possible interest rate cuts.
"While Powell reiterated the message that Fed need not rush to cut, he did suggest that the Fed may cut rates sooner rather than later if inflation pressures remain contained," OCBC analysts said in a note.
"But he was careful in not committing to a timeline."
Fed rate cuts could aid Hong Kong stocks as they are closely tied to global monetary policy shifts. (Reuters/Xinhua)
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