Hong Kong stocks approach 2-week high as mild US inflation raises rate-cut bets
stocks rallied on Wednesday, setting the benchmark gauge on course for a two-week high, as tamer US inflation data fuelled rate-cut expectations and corporate earnings prospects brightened.
The Hang Seng Index rose 1.1 per cent to 25,250.08 as of 10.09am local time, heading for the highest close since July 29. The Hang Seng Tech Index also gained 1.1 per cent. On the mainland, the CSI 300 Index climbed 0.2 per cent and the Shanghai Composite Index added 0.1 per cent.
Chinese pork processor WH Group surged 6.2 per cent to HK$8.36 after first-half operating profit increased 10.4 per cent from a year earlier. Tencent Holdings gained 2.5 per cent to HK$573.50, with the social media giant set to report a 7 per cent year-on-year increase in second-quarter net income later today. Alibaba Group Holding advanced 3 per cent to HK$120.10 and Meituan added 1.4 per cent to HK$121.10.
The S&P 500 and the Nasdaq 100 both hit record highs overnight after US inflation data came in line with expectations, fuelling hopes that the Federal Reserve would cut interest rates next month amid signs of a cooling jobs market. The probability of a 25-basis-point rate cut next month rose to 94.3 per cent from 85.9 per cent before the data release, according to CME Group.
Other major Asia-Pacific markets were mostly higher. Japan's Nikkei 225 climbed 1.3 per cent and South Korea's Kospi rose 0.4 per cent, while Australia's S&P/ASX 200 lost 0.7 per cent.
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