Hong Kong stocks rise for third day as China’s services PMI beats expectations
The Caixin China services PMI index reading of 51.1 in May exceeds Bloomberg’s consensus forecast of 51
The Hang Seng Index closed 1.1 per cent higher at 23,906.97, a level not seen since March 20. The three-day, 3.2 per cent advance is the longest since May 12. The Hang Seng Tech Index gained 1.9 per cent. On the mainland, the CSI 300 Index and the Shanghai Composite Index both rose 0.2 per cent.
Technology stocks gained across the board. Alibaba Group Holding gained 3.2 per cent to HK$118.30, Meituan rose 2.6 per cent to HK$144.40 and short-video platform Kuaishou Technology jumped 5 per cent to HK$54.50.
Hong Kong developers rose on expectations that a softer-than-expected US private payroll report would lead the Federal Reserve to cut interest rates, prompting the city’s monetary authority to follow suit to defend the Hong Kong dollar’s fixed peg. Hang Lung Properties climbed 3.4 per cent to HK$6.41 and Sun Hung Kai Properties added 1.1 per cent to HK$84.70.
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The Caixin China services purchasing managers’ index rose to 51.1 in May from 50.7 in April, according to index compilers Caixin and S&P Global on Thursday. That exceeded the consensus forecast of 51 in a Bloomberg poll. A reading above 50 suggests expansion.