FX.co ★ Hong Kong Equities Rise for 3rd as China Inflation Cools

Hong Kong stocks climbed 119 points, or 0.4%, to 27,301 in early trading on Wednesday, extending gains for a third consecutive session as most sectors advanced. Risk appetite was bolstered by a notable rise in U.S. equities, despite an overnight mixed session on Wall Street amid signs of softening U.S. consumption. Mainland Chinese shares also gained for a third straight day, with investors largely looking past January’s CPI and PPI releases. Annual consumer inflation slowed sharply to 0.2% from 0.8% in December, a three-month low, while producer prices fell for the 40th consecutive month, though at a more moderate pace.

Upside in Hong Kong was capped by weakening trading momentum ahead of the Lunar New Year holiday, which begins on February 15. Tech, consumer, and property names led the advance, while financials underperformed. Wuxi Biologics rose 2.6% on optimistic earnings guidance. Other strong performers included Zijin Mining Group (up 6.2%), Tencent Music Entertainment (up 5.0%), and Xiaomi Corp. (up 4.4%). By contrast, Semiconductor Manufacturing International Corp. (SMIC) declined 3.8% after missing Q4 margin expectations and issuing soft forward guidance.