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Hong Kong markets rally for second week on services sector uptick

EditorPollock Mondal
Published 11/03/2023, 02:12 PM
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Hong Kong's Hang Seng Index saw a second week of gains, bolstered by an uptick in China's services sector which offset a decline in manufacturing. The index rose by 1.3% today, contributing to the overall 0.4% rebound from an 11-month low for the benchmark index during this week. This surge was also reflected in the Tech Index and Shanghai Composite Index, which posted gains of 1.2% and 0.6% respectively.

Key firms such as Tencent (HK:0700), Alibaba (NYSE:BABA) Group, JD (NASDAQ:JD).com, Sun Hung Kai Properties, and Henderson Land (OTC:HLDCY) saw increases in their stock prices. This growth helped counterbalance preceding quarterly losses.

Policy interventions have played a significant role in boosting investor confidence. Measures including property easing and a pause in interest-rate hikes led mainland funds to make net purchases of HK$7.4 billion (US$946 million) since last Friday.

The Caixin China PMI Services Index showed a minor expansion in China's services activity in October, despite an unexpected contraction in manufacturing. Major Hong Kong lenders HSBC and Bank of China (Hong Kong) experienced continued gains after they refrained from raising mortgage rates following the city's base rate and the Federal Reserve's "dovish pivot."

In celebration of its 30th anniversary, the Hong Kong Monetary Authority (HKMA) plans to host a global financial heavyweights summit, as revealed by CEO Eddie Yue.

Today, Hong Kong's Hang Seng initiated with a 1% opening gain at $17,405.91, while Shanghai's premarket saw a rise of 0.1%. Australia's S&P/ASX also experienced a gain of 1.25%.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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