Hong Kong News
Nonpartisan, Noncommercial, unconstrained.
Thursday, Apr 25, 2024
Real, Diverse, Unbiased.
Hong Kong stocks cap weekly gain as US spending plans aid recovery bets
Hong Kong stocks capped the first winning week in June as a massive US infrastructure spending plan with bipartisan support moved forward, fuelling optimism on market outlook.
Hong Kong stocks advanced, completing the first winning week in June as a US$579 billion US infrastructure spending plan with bipartisan support moved forward and bolstered optimism about the momentum in global economic recovery.
The Hang Seng Index climbed 1.4 per cent to 29,288.22 at the close of Friday trading, the highest level since June 2. The benchmark logged a 1.7 per cent gain since June 18, snapping a three-week losing streak. China’s Shanghai Composite Index added 1.2 per cent, posting a 2.3 per cent win from a week ago.
Meituan and Budweiser Brewing were the biggest gainers among the 58-member Hang Seng gauge, rising more than 4 per cent.
Sentiment was strong across key Asia-Pacific markets, with Taiwan’s Topix leading the charge with a 0.8 per cent rise. US equities closed at record highs overnight as investors hailed President Joe Biden’s infrastructure plan. The bipartisan deal is expected to move through Congress alongside a separate bill that would spend trillions more on what Biden called “human infrastructure.”
“The positive market tone recognises the potential growth benefits of the compromise,” Kerry Craig, a strategist at JPMorgan Asset Management, said in a note to clients. “We have more clarity on the fiscal outlook. We continue to expect progress on further fiscal stimulus in the months to come.”
Local stock investors were put through a wild ride earlier this week, though, after surprising hawkish comments by some Federal Reserve officials on interest rates reignited taper tantrum and diminished risk appetite. China’s market-based loan prime rate has remained unchanged this month, assuaging concerns about tightening liquidity.
The Hang Seng Index has risen 3.2 per cent this quarter, the slowest since the three-month period ending September 30. Some investment banks have cautioned about the outlook for stocks throughout the year, citing lingering impact of Beijing’s anti-monopoly crackdown on technology juggernauts.
On the mainland, Shanghai International Airport rallied 4.5 per cent to 51.07 yuan on a plan to inject the Shanghai Hongqiao International Airport business into the listed entity. The stock resumed trading after a two- week suspension for the announcement.
Three companies all rose on their first day of trading in China. Zhejiang Cayi Vacuum Container surged 308 per cent from the initial public offering price in Shenzhen. Changchun BCHT Biotechnology, a vaccine maker, jumped 226 per cent and Zhejiang Shaoxing Rural Commercial Bank gained 44 per cent.
The Hang Seng Index climbed 1.4 per cent to 29,288.22 at the close of Friday trading, the highest level since June 2. The benchmark logged a 1.7 per cent gain since June 18, snapping a three-week losing streak. China’s Shanghai Composite Index added 1.2 per cent, posting a 2.3 per cent win from a week ago.
Meituan and Budweiser Brewing were the biggest gainers among the 58-member Hang Seng gauge, rising more than 4 per cent.
Sentiment was strong across key Asia-Pacific markets, with Taiwan’s Topix leading the charge with a 0.8 per cent rise. US equities closed at record highs overnight as investors hailed President Joe Biden’s infrastructure plan. The bipartisan deal is expected to move through Congress alongside a separate bill that would spend trillions more on what Biden called “human infrastructure.”
“The positive market tone recognises the potential growth benefits of the compromise,” Kerry Craig, a strategist at JPMorgan Asset Management, said in a note to clients. “We have more clarity on the fiscal outlook. We continue to expect progress on further fiscal stimulus in the months to come.”
Local stock investors were put through a wild ride earlier this week, though, after surprising hawkish comments by some Federal Reserve officials on interest rates reignited taper tantrum and diminished risk appetite. China’s market-based loan prime rate has remained unchanged this month, assuaging concerns about tightening liquidity.
The Hang Seng Index has risen 3.2 per cent this quarter, the slowest since the three-month period ending September 30. Some investment banks have cautioned about the outlook for stocks throughout the year, citing lingering impact of Beijing’s anti-monopoly crackdown on technology juggernauts.
On the mainland, Shanghai International Airport rallied 4.5 per cent to 51.07 yuan on a plan to inject the Shanghai Hongqiao International Airport business into the listed entity. The stock resumed trading after a two- week suspension for the announcement.
Three companies all rose on their first day of trading in China. Zhejiang Cayi Vacuum Container surged 308 per cent from the initial public offering price in Shenzhen. Changchun BCHT Biotechnology, a vaccine maker, jumped 226 per cent and Zhejiang Shaoxing Rural Commercial Bank gained 44 per cent.
