Hong Kong stocks jump by most in three weeks as lower-than-expected US inflation eases rate-hike fears

Worry about an out-of-cycle rate hike receded after US inflation slowed to 8.5 per cent in July, down from a four-decade-high of 9.1 per cent in June

The Hang Seng Index shook off three days of losses, with Techtronic Industries, Sunny Optical, Li Ning and Alibaba among the biggest gainers

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A woman walks past an electronic display showing the Hang Seng Index in the Central district of Hong Kong on May 27, 2022. Photo: AFP

Published: 10:35am, 11 Aug 2022Updated: 8:12pm, 11 Aug 2022

Hong Kong stocks rose by the most in three weeks following overnight gains in New York, as slower-than-forecasted US inflation lessened the pressure on the US Federal Reserve to conduct an “out-of-cycle” tightening of monetary policy before its next scheduled meeting in late September.

The Hang Seng Index advanced 2.4 per cent to 20,082.43 at the close of Thursday trading, shaking off three consecutive days of losses totalling 3 per cent. The Tech Index gained 3.7 per cent, while the Shanghai Composite Index rose 1.6 per cent.

Alibaba, the owner of this newspaper, strengthened 4.3 per cent to HK$91.75. Sunny Optical added 9.2 per cent to HK$121.50 and Li Ning gained 7.1 per cent to HK$66.90. Haidilao climbed 4.5 per cent to HK$15.72 while Techtronic Industries soared 10.9 per cent to HK$96.45.

US headline inflation was 8.5 per cent in July, down from the four-decade-high of 9.1 per cent in June. That came in below expectations and sent stocks soaring, with the S&P 500 hitting a three-month high.