Hong Kong Stocks Reach Two-Week High Amid Rising Rate-Cut Expectations from US Inflation Data

Hong Kong stocks experienced a significant increase, reaching their highest point in nearly two weeks. This upward movement in the market was largely driven by a slowdown in inflation in the United States, which strengthened the argument for the Federal Reserve to consider cutting interest rates. This prospect increased the attractiveness of Asian equities.

As of 10:09 AM local time, the Hang Seng Index rose by 1.6 percent, settling at 19,590.61. This marks a potential for the highest closing value since January 6. The Hang Seng Tech Index also showed positive numbers, increasing by 2.1 percent. In mainland China, both the CSI 300 Index and the Shanghai Composite Index rose by 0.7 percent.

The performance of stocks in Hong Kong was largely positive, with only eight out of the 83 stocks in the Hang Seng Index declining. Notably, China Hongqiao Group, an aluminium manufacturer, saw a significant rise of 5.6 percent, reaching HK$12.04. Meanwhile, Zijin Mining Group, involved in gold production, gained 3.7 percent to trade at HK$15. Other prominent companies such as Alibaba Group Holding rose by 1.6 percent to HK$81.20, and Tencent Holdings increased by 1.1 percent to HK$384.20.

On the inflation front, the US core consumer price index, which excludes food and energy prices, reported a month-on-month increase of 0.2 percent in December. This figure signifies the first slowdown in inflation in six months. On a year-on-year basis, the core index rose by 3.2 percent, still above the Federal Reserve's target of 2 percent. Some officials indicated that this data suggests inflation may continue to decrease.

In addition to Hong Kong, other major Asian markets also saw gains. Japan's Nikkei 225 index rose by 0.6 percent, while South Korea's Kospi index gained 1.2 percent, and Australia’s S&P/ASX 200 increased by 1.3 percent.

stocks, inflation, HongKong