Hong Kong stocks rose in the early trading on Monday, adding to its biggest gain in two weeks on Friday, as investors focus on the coming earnings season and potential interest-rate cuts in the United States.
The Hang Seng Index added 1.3 per cent to 17,661.10 as of 10.20am local time. The Tech Index jumped 2.8 per cent, while the Shanghai Composite Index gained 0.7 per cent.
Investors are looking to the Federal Reserve’s annual meeting this week in Jackson Hole, Wyoming, which is expected to pave the way for the rate cut next month. US stocks recorded their best week of this year after closing higher on Friday, shedding jitters of a US economic slowdown earlier this month.
“The Hong Kong stock market has an opportunity to show short-term upwards momentum this week,” said Kenny Ng, a securities strategist at China Everbright Securities International.
Overseas markets have reported strong gains and investors’ concerns of a US recession are waning, pushing higher the probability of a rate cut in September, he added.
Hong Kong stocks are also entering the earnings season, which will decide the market’s direction. Bourse operator Hong Kong Exchanges and Clearing will report its interim results on Wednesday followed by insurance giant AIA on Thursday.
Budweiser Brewing’s shares dropped 2.3 per cent to HK$9.26, while Xinyi Solar Holdings declined 2.1 per cent to HK$3.21.
Semiconductor and electronics equipment maker ASMPT gained 1.5 per cent to HK$85.95 after the index compiler Hang Seng Indexes Company said the stock will be added to the 30-member Hang Seng Tech Index.
Other major Asian markets were broadly lower. Japan’s Nikkei 225 dropped 0.1 per cent and South Korea’s Kospi declined 0.3 per cent, while Australia’s S&P/ASX 200 was flat.
