SHANGHAI: China stocks edged up on Thursday, while Hong Kong shares rose, tracking global markets as investors bet that US interest rates have peaked and cuts are on the way.
** The blue-chip CSI 300 Index and the Shanghai Composite Index were both up 0.1% by the midday recess.
** Hong Kong’s Hang Seng Index added 1.2% and the Hang Seng China Enterprises Index climbed 1.4%.
** Asian shares and bonds extended a global rally as a non-committal Federal Reserve Chair Jerome Powell had markets double down on bets that US interest rates have peaked and cuts are on the way.
** Overnight, the Fed held the policy rate steady in its current 5.25%-5.50% range. While Chair Jerome Powell did not rule out another hike, markets judged he was not quite as hawkish as he might have been.
China stocks flat as economic data dampens sentiment
** “This round of rate hike cycle probably have finished,” said Zhang Chi, analyst at Sinolink Securities in a note, adding it would ease the outflow pressure for China stocks.
** Zhang said China growth stocks, especially healthcare companies, as well as Hong Kong-listed tech companies would benefit the most.
** Tech giants listed in Hong Kong jumped 2.3%.
** However, in onshore market, most stocks fell despite a slight gain in the benchmark index, amid concerns of a fragile economic recovery. Latest data showed China’s factory activity unexpectedly contracted in October.
** Shares in new energy and liquor makers were down roughly 1% each, while media firms added 2.5%.
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