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The Hang Seng Index jumped 1.1 per cent to 16,690.28 at 11.08am local time, halting a 1.7 per cent drop over the past two days. The Tech Index also gained 1.4 per cent and the Shanghai Composite Index retreated 0.2 per cent.
Alibaba Group gained 3.5 per cent to HK$73.15 while e-commerce peer JD.com advanced 3.8 per cent to HK$106.60. Tencent climbed 1.7 per cent to HK$317 while Macau casino operator Sands China added 5.1 per cent to HK$22.55. Chinese sportswear maker Li Ning jumped 3.2 per cent to HK$19.48, after spending HK$95 million (US$12.1 million) on stock repurchases.
Traders returned on appealing valuations. The 82 Hang Seng Index members trade at an average of 5.6 times realised earnings, the cheapest among the major markets globally, after a 16 per cent decline this year, according to Bloomberg data. The index is headed for an unprecedented fourth year of losses.
Alibaba names new Taobao and Tmall CEO in major move to fend off rivals
Alibaba names new Taobao and Tmall CEO in major move to fend off rivals
“Growing expectations of rate cuts by the Fed will help induce a reassessment of valuations in Hong Kong shares,” said Zhao Hongmei, an analyst at Zhongtai Securities. “Short-term trading opportunities will emerge.”
Elsewhere, the Dow Jones Industrial Average and the Nasdaq 100 rose to all-time highs overnight and the S&P 500 approached its record-high on optimism the Federal Reserve will soon begin its monetary easing cycle amid slowing US inflation.
Three companies started trading. iMotion Automotive Technology, which offers autonomous driving solutions, declined 6.9 per cent to HK$27.60 in Hong Kong and Henan Jinyuan Hydrogenated Chemicals slumped 17 per cent to HK$1. Financial security-escort company Anbang Save-Guard Group surged 157 per cent to 49.03 yuan in Shanghai.
Other major Asian markets all rose. Japan’s Nikkei 225 climbed 1.8 per cent, while South Korea’s Kospi gained 1.3 per cent and Australia’s S&P/ASX 200 added 0.6 per cent.
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