Hong Kong Stocks React to BYD and Xpeng's Record Sales Amid Stimulus Hopes
Hong Kong stocks rose, led by electric vehicle (EV) producers amid record sales. Investors await further fresh catalysts from policymakers in Beijing to shore up economic growth, while traders bet the Federal Reserve will cut rates this week to extend its easing cycle.
The Hang Seng Index gained 0.2 per cent to 20,542.46 as of 9.45am local time, following a 0.4 per cent setback last week. The Hang Seng Tech Index rose 1.1 per cent. Onshore stocks also advanced, with the CSI 300 benchmark climbing 0.5 per cent and the Shanghai Composite Index adding 0.1 per cent.
Trip.com jumped 4.9 per cent to HK$521.50, and Wuxi Biologics appreciated 2.3 per cent to HK$16.70. China’s biggest EV makers rallied after chalking up record sales last month. Geely surged 5.4 per cent to HK$14.58 and BYD strengthened 4.4 per cent to HK$289.80. Xpeng soared 6.5 per cent to HK$47.20.
The National People’s Congress, China’s top legislative body, meets from November 4 to 8, with some analysts banking on at least 2 trillion yuan (US$280 billion) of fiscal boost to complement the monetary stimulus package unveiled in late September.
The Federal Reserve’s open market committee will meet on November 6 and 7. Rates traders are betting on a 25-basis point cut, according to odds compiled by CME Group. Bets on a 50-basis point cut have weakened to 2 per cent from about 32 per cent a month ago.
Other key Asian markets traded higher. South Korea’s Kospi gained 1.2 per cent and Australia’s S&P/ASX 200 rose 0.4 per cent. Financial markets in Japan are closed for a holiday.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.