Hong Kong Stocks Rise 0.8% on Rate Cuts and Sentiment Boos

According to data from TradingEconomics, Hong Kong stocks rose by 201 points or 0.8% to reach 25,733 points in Thursday's morning session, continuing their gains for the second consecutive day following strong performance from Wall Street.

The investment mood improved as the US Federal Reserve cut interest rates as expected, amid hopes for continued easing later despite policymakers indicating a potential pause. Locally, the Hong Kong Monetary Authority followed the Fed's lead, lowering borrowing costs to their lowest level since October 2022, confirming the alignment between the city's policies and the United States.

All sectors saw collective gains, led by the financial, consumer, and technology sectors. However, the upward momentum remained limited due to caution ahead of the release of Chinese credit data for November, especially after new yuan loans sharply declined in October and missed expectations, reflecting weak consumer demand.

Investors are also awaiting data on industrial production for the third quarter and the unemployment rate for November in Hong Kong.

Notable rising stocks included: Prada up 3.0%, Pop Mart Intl. up 2.2%, China Taiping up 1.9%, and Techtronic up 1.2%.