Media365
Hong Kong stocks rose on Monday as investors bet on easing deflation pressures after China’s consumer prices returned to growth in October.
The Hang Seng Index gained 0.6 per cent to 26,403.05 at the noon trading break. The Hang Seng Tech Index rose 0.1 per cent. On the mainland, the CSI 300 Index was down about 0.2 per cent and the Shanghai Composite Index was unchanged.
Chinese toymaker Pop Mart International led the gainers, surging 6.8 per cent to HK$218.80. Dairy producer Mengniu rose 4 per cent to HK$14.99 and carmaker BYD added 4.1 per cent to HK$101.90.
China’s consumer price index (CPI), a key gauge of inflation, rose by a better-than-expected 0.2 per cent year on year last month, recording its strongest reading since January, according to data from the National Bureau of Statistics on Sunday.
However, analysts said it was mostly boosted by October’s national day holiday spending and could be temporary.
“The CPI was a bit of a surprise to the market,” said Zhiwei Zhang, president and chief economist at Pinpoint Asset Management. “[But], I think it is too early to conclude that deflation is over.”
