Hong Kong Stock Market: Hang Seng Index Rises Amid Rate Cut Speculation and Alibaba's Influence

Hong Kong Stock Market Overview

Hong Kong stocks jumped for a second day to a one-week high as mainland developers rallied on speculation about mortgage-rate cuts. The Hang Seng Index added 1.3 per cent to 17,469.93 as of 10.05am local time, contributing to a 0.8 per cent gain on Thursday. The Tech Index gained 1 per cent while the Shanghai Composite Index added 0.3 per cent to climb out from an eight-month low.

Key Performers in the Market

• Food delivery platform Meituan added 2.2 per cent to HK$125.
• E-commerce giant Alibaba Group Holding added 1.4 per cent to HK$84.35.
• Insurer Ping An jumped 1.7 per cent to HK$35.45.
• Longfor added 3.4 per cent to HK$8.05.
• China Resources Land rallied 3.1 per cent to HK$20.

Market Influences and Outlook

China could cut rates on outstanding mortgages by up to 50 basis points as early as this month to lower borrowing costs and spur consumption, Bloomberg reported on Friday. Friday's gain has helped the Hang Seng Index to erase losses from earlier in the week, narrowing September's losses to 3 per cent. Optimism about a rate cut from the US Federal Reserve and increasing southbound inflows after Alibaba's inclusion in the Stock Connect programme have helped shore up the markets.

Other Asian Markets

Other Asian stocks were mixed on Friday. Japan’s Nikkei 225 lost 0.5 per cent, while South Korea’s Kospi added 0.1 per cent, and Australia’s S&P/ASX 200 gained 0.3 per cent. This diversification underscores the varied responses within the region.