Hong Kong Stocks Surge Amid U.S. Rate Cut Hopes
Hong Kong stocks achieved four-year highs due to expectations of a U.S. rate cut, contrasting with a slowdown in China following a drop in SMIC stock. The Hang Seng Index increased, while China's indexes fell. Global market optimism and potential Chinese policy easing supported Hong Kong shares.
- Country:
- China
Hong Kong stocks reached new heights on Tuesday, driven by hopes for an upcoming U.S. interest rate cut. This optimism led the Hang Seng Index to rise by 0.8% after reaching levels not seen since October 2021.
Conversely, China's markets paused their rally. Both the CSI300 Index and the Shanghai Composite Index dipped by 0.5%, with technology shares weighing heavily due to a substantial drop in Semiconductor Manufacturing International Corp's stock. The decline in SMIC shares by 9% came post-resumption of trading following news of an acquisition deal.
In a different trend, shares of Chinese gold miners climbed as gold prices rose. In parallel, Hong Kong property shares also saw significant gains amid confidence in global markets anticipating Federal Reserve's rate cut actions and potential policy relaxation in China to enhance Hong Kong's stock valuations.
(With inputs from agencies.)
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