Hong Kong Stocks Soar Amid US Rate Cut Hopes Despite China Tech Slump
Hong Kong stocks reached four-year highs due to optimism over a potential U.S. rate cut, despite a slump in Chinese tech shares. Investors are hopeful following a weak U.S. jobs report and expect policy easing. Semiconductor Manufacturing International Corp faced profit-taking, but gold and property shares rose.
Hong Kong stocks hit their highest level in four years, driven by anticipation of a U.S. rate cut, though the Chinese market faced a slowdown with a drop in tech shares. The Hang Seng Index increased by 1.2%, marking its highest close since October 2021.
Investor optimism in Hong Kong shares was fueled by expectations that the Federal Reserve would lower rates at its upcoming meeting following the release of a disappointing U.S. jobs report, combined with Wall Street's record closes.
Guoyuan International noted that Hong Kong's market is bolstered by global optimism around a potential Fed rate cut and further policy easing in China. Conversely, China's Semiconductor Manufacturing International Corp suffered a sharp 10% decrease, while gold and property shares saw gains amidst the market turbulence.
(With inputs from agencies.)
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