Hong Kong stocks head for longest rising streak in 2 weeks on US rate-cut optimism

The Hang Seng Index advanced 0.6 per cent to 26,039.99 as of 10.17am local time. The Hang Seng Tech Index gained 0.5 per cent.

On the mainland, the CSI 300 Index climbed 0.5 per cent and the Shanghai Composite Index added 0.2 per cent.

Meituan rallied 6.6 per cent to HK$104.60 before its earnings card on Friday, while parcel delivery firm ZTO Express gained 3.5 per cent to HK$161. Electric vehicle maker BYD rose 2.7 per cent to HK$98.35, and JD.com added 1.8 per cent to HK$114.40.

Stocks had a reversal of sentiment after jitters about lofty valuations of artificial-intelligence stocks and financial tightening led to sell-offs in equities and bitcoin. Expectations about a rate cut next month have been building up after data showed that consumer confidence in the US dropped and retail sales remained sluggish, with the market trading on a “bad news is good news” narrative.