Hong Kong stocks hit 4-year high as China inflation data lifts chances of a rate cut
Consumer prices on the mainland slipped 0.4 per cent in August from a year earlier, compared with estimates of a 0.2 per cent decrease
The Hang Seng Index gained 1 per cent to 26,200.26, the highest close since September 10, 2021. The Hang Seng Tech Index gained 1.3 per cent.
On the mainland, the CSI 300 Index gained 0.2 per cent and the Shanghai Composite Index added 0.1 per cent.
Technology stocks led the gains after Oracle surged to a record in the US amid robust demand for artificial-intelligence infrastructure. Search engine operator Baidu gained 2.8 per cent to HK$109.10. Alibaba Group Holding added 0.6 per cent to HK$142.80 and rival JD.com rallied 3.6 per cent to HK$132.10. Tencent Holdings advanced 1 per cent to HK$633.50.
Consumer prices in China dropped 0.4 per cent year on year in August, the first decline in three months, according to data from the National Bureau of Statistics on Wednesday. It was steeper than the consensus estimate of a 0.2 per cent decrease. Consumer prices were unchanged in July.