Hong Kong Stocks Reach Two-Week High Amid Rising Rate-Cut Expectations Following US Inflation Data

The Hong Kong stock market experienced a significant boost, reaching an almost two-week high, largely influenced by a slowdown in US inflation. This development strengthened the argument for the Federal Reserve to consider lowering interest rates, making Asian equities more attractive.

As of 10:09 AM local time, the Hang Seng Index rose by 1.6 percent, sitting at 19,590.61 points and heading towards its highest closing value since January 6. Additionally, the Hang Seng Tech Index saw an increase of 2.1 percent. In mainland China, both the CSI 300 Index and the Shanghai Composite Index added 0.7 percent.

On the Hang Seng Index, only eight out of 83 stocks declined. Notable performers included the aluminium producer China Hongqiao Group, which surged by 5.6 percent to HK$12.04. The gold mining company Zijin Mining Group also saw gains, advancing by 3.7 percent to HK$15. Other significant players included Alibaba Group Holding, rising 1.6 percent to HK$81.20, and Tencent Holdings, increasing by 1.1 percent to HK$384.20.

In the United States, the core consumer price index, which excludes volatile food and energy costs, increased by 0.2 percent month-on-month in December. This marked the first slowdown in inflation in six months. Year-on-year, this index rose by 3.2 percent, remaining above the Federal Reserve's target of 2 percent. Some officials expressed confidence that this trend suggests inflation may continue to decrease.

Other major Asian markets also reported gains. The Nikkei 225 in Japan rose by 0.6 percent, South Korea's Kospi gained 1.2 percent, and Australia's S&P/ASX 200 increased by 1.3 percent.

HongKong, Stocks, Inflation