FX.co ★ Hong Kong Shares Jump on Ceasefire Hopes and Fed Rate Cut Signal

Hong Kong's stock market experienced a 400-point surge, equivalent to a 1.7% increase, reaching 24,091 during Tuesday morning's trading session. This marks the third consecutive day of gains, bringing the market to its highest point in a week. Investor sentiment was bolstered by a rally in U.S. stock futures and a reduction in geopolitical tensions after President Trump declared a tentative ceasefire between Israel and Iran, commencing around midnight on Monday, Washington time. Additionally, markets reacted positively to remarks from Federal Reserve Vice Chair Bowman, who indicated the possibility of an interest rate cut as early as July. In China, the National People's Congress Standing Committee is convening this week to examine proposed amendments to the anti-unfair competition law. The revisions aim to reduce aggressive competition among online platforms and enhance regulatory authorities' capabilities. Gains were seen across all sectors, each rising more than 1%, fueled by the most robust Stock Connect inflows in three weeks. Semiconductor Manufacturing International Corporation (SMIC) saw a significant increase of 2.8% following reports of potential new technological restrictions by the United States. Other early top performers included China Hongqiao Group, which rose by 5.3%, Li Auto, with a 4.4% increase, and Techtronic Industries, advancing by 3.6%.