Stocks Rise as Fed Chair Jerome Powell Hints at Rate Cuts

Hong Kong Stocks Rally on Rate Cut Hints

Hong Kong stocks rallied, extending a three-week winning streak, fueled by optimism that borrowing costs may decline soon.

Market Movements and Key Stocks

The Hang Seng Index rose 1% to 17,784.99 at 9:55 am local time, building on a 1% advance last week. The Tech Index gained 1.3%, while the Shanghai Composite Index slipped by 0.1%.

• Longfor Group surged 5.5% to HK$8.96
• Wuxi Biologics gained 3.7% to HK$10.64
• Ping An Insurance added 2.1% to HK$36.30
• Anta rose 2.4%.

Tech stocks also enjoyed positive momentum, with Baidu leading, increasing 3.2% to HK$84.85. Tencent climbed 1.6% to HK$381.60, while Alibaba Group Holding advanced 1.5% to HK$83.85 following its listing status conversion.

Federal Reserve Insights

The market received positive signals after Fed Chair Jerome Powell indicated readiness for policy adjustments. The Fed has held the target rate steady since raising it 11 times since March 2022. Powell asserted, “The time has come for policy to adjust.”

The next Fed rate-setting meeting is scheduled for September 17-18. The Hong Kong Monetary Authority typically follows the Fed’s decisions due to its Linked Exchange Rate system.

Regional Market Performance

In regional markets, Japan's Nikkei 225 Index fell 0.8%, while Australia’s S&P/ASX 200 advanced 0.7%, and South Korea's Kospi remained relatively unchanged.