Hong Kong stocks extend gains to 4-1/2-year high, mainland market higher

SHANGHAI: Hong Kong stocks climbed for a sixth consecutive session to notch a 4-1/2-year high on Wednesday, tracking gains on Wall Street and led by advances in energy and materials shares following gold’s blistering rally.

• By the midday break, Hong Kong’s benchmark Hang Seng Index was up 2.21% - its highest level since July 2021.
• Energy and materials stocks were the top gainers, with the Hang Seng energy and materials sub-indexes jumping 4.71% and 3.89%, respectively.
• This came after gold broke through $5,200 for the first time on Wednesday, after rising more than 3% in the previous session, as the dollar plunged to a near four-year low amid persisting geopolitical concerns.
• Surging gold prices also supported mainland shares, with the CSI non-ferrous metal sub-index leaping 5.24%. Zijin Mining rose 3.82%.
• In the mainland market, the Shanghai Composite index rose 0.49% while the blue-chip CSI300 index inched higher by 0.47%.
• Busy Ming Group shares jumped 75% on their Hong Kong trading debut on Wednesday, after the Chinese snack and beverage retailer raised HK$3.67 billion in an initial public offering.
• Embattled property developer China Vanke, rose in morning deals after the company received further support from its biggest shareholder Shenzhen Metro.
• Separately, China has approved its first batch of Nvidia’s H200 artificial intelligence chips for import, sources told Reuters, marking a shift in position as China seeks to balance its AI needs against spurring domestic development.
• “Investors will watch closely for any guidance from Federal Reserve Chair Jerome Powell on the path of interest rate cuts for this year, as well as whether the earnings of tech giants can justify the pressure of high valuations,” analysts at SDIC Securities said in a note.
• Around the region, MSCI’s Asia ex-Japan stock index was firmer by 1.26% while Japan’s Nikkei index was down 0.55%.