FX.co ★ Hong Kong Market Builds on Previous Gains

Hong Kong equities experienced an uplift on Thursday morning, rising by 201 points, or 0.8%, to reach 25,733. This marks the second consecutive day of gains, buoyed by a robust performance on Wall Street the night before. Investor sentiment improved following the anticipated interest rate cut by the Federal Reserve, with market participants still hopeful for further monetary easing, despite signals from policymakers indicating a potential pause. In response, the Hong Kong Monetary Authority mirrored the Fed’s decision, reducing borrowing costs to their lowest level since October 2022, underscoring the city's policy alignment with the United States. Gains were observed across various sectors, spearheaded by financials, consumer goods, and technology. However, the upward trend was moderated by caution ahead of the release of China's November credit data. October saw a sharp decline in new yuan loans, falling short of expectations and highlighting weak consumer demand. Looking ahead, investors are anticipating Hong Kong's third-quarter industrial output and November unemployment figures. Among the top performers were Prada, rising 3.0%; Pop Mart International, up 2.2%; China Taiping, increasing 1.9%; and Techtronic, with a 1.2% gain.