Hong Kong stocks extend bounce-back from tech turbulence as risk sentiment returns
Traders move on to focus on coming US economic data that could reshape the path to monetary easing by the Federal Reserve
The Hang Seng Index rose 0.6 per cent to 27,183.15 at the close. The Hang Seng Tech Index climbed 0.6 per cent. On the mainland, the CSI 300 Index and the Shanghai Composite Index both added 0.1 per cent.
Limiting gains, food-delivery service provider Meituan retreated 2.5 per cent to HK$88.80, and online travel agency Trip.com fell 1.6 per cent to HK$448.60.
Buying interest returned as US stocks staged a comeback from a tumultuous sell-off, in which technology stocks were dumped on concerns that their business models would be challenged by artificial intelligence. The Dow Jones Industrial Average rose to a record for a second day on Monday and the S&P 500 gained ground on its all-time high, signalling a broad-based recovery in risk appetite.
“We now look ahead to Hong Kong’s next exciting chapter,” said Michelle Kwok, head of Asia real estate and Hong Kong equity research with HSBC, adding that liquidity was fuelling the turnaround. “Domestic investors are stepping up, southbound flows remain in play and foreign capital is returning with conviction.”