China and Hong Kong Stocks Surge Amid Fed Rate Cut Hopes
Mainland China and Hong Kong stocks rose for a third session as the Shanghai Composite Index reached its highest since December 2021. This boost follows expectations of a U.S. Federal Reserve interest rate cut and China's fiscal strategies to support its economy amidst U.S. tariff challenges.
The stocks of Mainland China and Hong Kong experienced a consecutive rise for the third session on Wednesday, with the Shanghai Composite Index achieving its highest mark in over three-and-a-half years. Investor sentiment was bolstered by prospects of an expected Federal Reserve interest rate cut next month.
On midday break, the Shanghai Composite Index recorded a 0.56% rise, marking its highest level since December 13, 2021, while China's blue-chip CSI300 index gained 0.92%. Likewise, the Hang Seng Index in Hong Kong witnessed a 1.88% increase, fueled by the positive expectations surrounding a September Fed rate cut due to limited impact from U.S. tariffs on goods prices.
The global market momentum was further strengthened by the MSCI All Country World Index. Meanwhile, China announced interest subsidies in eight consumer service sectors, enhancing market confidence as they retain measures to stimulate growth despite potential challenges from U.S. trade tariffs.
(With inputs from agencies.)
Google News