HONG KONG: Hong Kong stocks soared more than four percent Wednesday afternoon after a smaller-than-forecast rise in US inflation fanned optimism that the Federal Reserve will not need to hike interest rates further.
The Hang Seng Index jumped 4.05 percent, or 705.42 points, to 18,102.28.
The advance was in line with a rally across world markets as investors breathed a sigh of relief that more than a year of tightening could be over, with some now pricing in rate cuts in the new year.
Market-heavyweight Chinese tech firms led the gains, with Alibaba and Tencent each up more than four percent and JD.com up almost six percent.
Hong Kong stocks build on gains at open
There was also some cheer from data showing Chinese retail sales rose at their quickest pace in five months, giving some hope for the world’s number-two economy.
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