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Hong Kong stock market
BusinessChina Business

Alibaba leads Hong Kong stocks to best gain in a week on China data while markets brace for Fed rate hike

  • Reports on industrial production and retail sales exceeded market estimates, shoring up confidence in local stocks
  • The Fed is seen raising its target rate by 75 basis points later today, based on market pricing, in what would be the most aggressive tightening since 1994

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People walk on pedestrian bridge showing stock exchange data in Shanghai on June 8, 2022. Photo:. EPA-EFE
Zhang Shidong
Hong Kong stocks rose by the most in a week as government reports signalled China’s economic recovery gained some traction last month, overcoming concerns about faster rate increases by the Federal Reserve in its policy lift-off.
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The Hang Seng Index advanced 1.1 per cent to 21,308.21 at the close of Wednesday trading. The Hang Seng Tech Index surged 2.4 per cent while the Shanghai Composite Index added 0.5 per cent.

Alibaba Group Holding led gainers, rising by 4.4 per cent to HK$105.60. Ping An Insurance rallied 8 per cent to HK$50.55 while developer Country Garden climbed 4.8 per cent to HK$4.39.

Gains in local markets defied losses elsewhere in the Asia-Pacific region as traders bet China will ramp up policy stimulus to protect the economy ravaged by Covid-19 lockdowns. Banks including Goldman Sachs said the “policy put” has been activated, and the worst may be over since the market made a historic rebound from a mid-March sell-off.

Industrial production increased 0.7 per cent in May from a year earlier, the statistics bureau said on Wednesday, beating forecasts for a 0.9 per cent contraction among economists tracked by Bloomberg. Retail sales shrank 6.7 per cent, narrower than forecasts for a 7.1 per cent drop. Fixed-asset investment gained 6.2 per cent in the first five months, in line with expectations.

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