HONG KONG: Hong Kong stocks rose in holiday-thinned trade on Tuesday, led by local property giants on hopes of an oversized interest rate cut by the Federal Reserve, while the upbeat listing of Chinese home appliances maker Midea Group also boosted sentiment.
At the close of trade, the Hang Seng index was up 237.90 points, or 1.37%, at 17,660.02. The Hang Seng China Enterprises index rose 1.41% to 6,176.03.
Midea Group jumped by up to 9.5% and closed 7.8% higher in its Hong Kong trading debut on Tuesday after raising nearly $4 billion in the city’s biggest share offering in almost four years.
Hong Kong property firms climbed broadly as investors bet the sector will be the biggest beneficiary among local stocks from a likely U.S. rate cut – the first in four years – on Wednesday. Hong Kong rates closely track their U.S. counterparts under the currency peg.
“Lower interest rates are positive for both developers and REITs,” said Dickie Wong, executive director of research at Kingston Securities, adding that if the pace of rate cuts accelerates, the Hong Kong property market could see some recovery.
Hong Kong stocks edge higher in thin trade
New World Development, CK Asset and Wharf Real Estate Investment Company, advanced 5.5%, 4.4% and 3.9% respectively.
The Hang Seng Tech Index rose 1.1%.
The sub-index of the Hang Seng tracking energy shares rose 1.5%, while the IT sector gained 0.72%, the financial sector ended 1.55% higher and the property sector was up 2.22%.
Mainland stock markets were closed for the mid-autumn festival break and will resume trading on Wednesday. Hong Kong markets traded on Tuesday but will be closed on Sept. 18.
The Stock Connect trading between the Mainland and Hong Kong is also closed between Sept. 16 and Sept. 18.
Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.56%, while Japan’s Nikkei index closed down 1.03%.
Source: Brecorder
