Hong Kong stocks rise to 3-month high on rate-cut hopes, bets on fund inflows

The Hang Seng Index gained 0.8 per cent to 24,362.73 at the local noon trading break, set for the highest close since March 19. The Hang Seng Tech Index rallied 1.9 per cent. On the mainland, the CSI 300 Index added 0.4 per cent while the Shanghai Composite Index rose 0.3 per cent.

Alibaba Group Holding advanced 1.5 per cent to HK$114.40 and Meituan climbed 1.3 per cent to HK$131.60. Hang Lung Properties jumped 5.5 per cent to HK$7.32 and Henderson Land Development rallied 3.8 per cent to HK$28.55 on optimism that lower borrowing costs will support home sales.

Stocks in Hong Kong and around the region strengthened after the Nasdaq 100 surpassed its previous all-time high in February. Fed chair Jerome Powell struck a balanced tone on policy outlook in his testimony to US lawmakers, and traders stepped up bets on a rate cut in September, which will weaken the US dollar and spur inflows to Asian markets. Oil prices tumbled after Israel and Iran agreed to a ceasefire.

Elsewhere, New Oriental Education and Technology surged 11 per cent to HK$45 after JPMorgan upgraded its rating on the stock on prospects of higher shareholder returns. ZhongAn Online P&C Insurance tumbled 4.4 per cent to HK$19.36 after Ant Group sold about 34 million shares in the insurer for HK$654 million (US$83.3 million).