Hong Kong stocks head for longest rising streak in 2 weeks on US rate-cut optimism



Hong Kong stocks rose for a third day on Wednesday, heading for the longest streak in two weeks, as mounting expectations about an imminent cut in interest rates in the US drew investors back to the market.

The Hang Seng Index advanced 0.6 per cent to 26,039.99 as of 10.17am local time. The Hang Seng Tech Index gained 0.5 per cent.

On the mainland, the CSI 300 Index climbed 0.5 per cent and the Shanghai Composite Index added 0.2 per cent.

Meituan rallied 6.6 per cent to HK$104.60 before its earnings card on Friday, while parcel delivery firm ZTO Express gained 3.5 per cent to HK$161. Electric vehicle maker BYD rose 2.7 per cent to HK$98.35, and JD.com added 1.8 per cent to HK$114.40.

Alibaba Group Holding fell 0.1 per cent to HK$157.60 after profit for the quarter ending in September decreased 52 per cent from a year ago, though the decline was smaller than expected.

Stocks had a reversal of sentiment after jitters about lofty valuations of artificial-intelligence stocks and financial tightening led to sell-offs in equities and bitcoin. Expectations about a rate cut next month have been building up after data showed that consumer confidence in the US dropped and retail sales remained sluggish, with the market trading on a “bad news is good news” narrative.

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