Hong Kong Stocks Rise Supported by Technology and Consumer Sectors Amid Improved Risk Appetite

Hong Kong stocks rose by 75 points or 0.3% to 25,834 in morning trading on Thursday, recovering from the sharp decline recorded in the previous session, according to Trading Economics. Strong gains from technology and consumer stocks supported investors' risk appetite. The prolonged rise on Wall Street during the night provided additional support for the markets ahead of the PCE index release on Friday, which is the Federal Reserve's preferred measure of inflation, as markets priced in a 25 basis point rate cut next week amid signs of a slowdown in the U.S. labor market.

Locally, economists expect the HIBOR (Hong Kong Interbank Offered Rate) to remain between 2-3% in the coming quarters, providing a stable backdrop for asset markets and the broader economy. However, gains were limited by the ongoing weakness in Chinese stocks, which have declined for three consecutive sessions following a weak PMI reading for November, raising concerns about a prolonged downturn in the real estate sector and the continuation of economic stagnation without new stimulus from Beijing before year-end.

Among the notable gainers in early trading were:

Akeso Inc. up 3.8%

Trip.com up 3.1%

Xiaomi Corp. up 2.6%

Meituan up 1.6%