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Hong Kong stocks climb as banking crisis ebbs while traders await Fed interest-rate decision later today
- US treasury secretary’s promise to intervene if smaller banks suffer deposit runs helps calm a rattled financial market
- Traders place greater odds that the Fed will raise interest rates by 25 basis points later today
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Hong Kong stocks climbed as concerns over a banking crisis eased while traders await the Fed’s interest-rate decision later today. Carmaker Geely surged after 2022 sales beat estimates.
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The Hang Seng Index jumped 1.7 per cent to 19,591.43 at the close of Wednesday trading, adding to the 1.4 per cent gain on Tuesday. The Tech Index gained 1.1 per cent while the Shanghai Composite Index added 0.3 per cent.
Alibaba Group leapt 2.9 per cent to HK$82.85, and rival JD.com gained 1.9 per cent to HK$152.90. HSBC advanced 3.1 per cent to HK$53.50 while AIA Group gained 3.6 per cent to HK$80.65. Tencent added 1 per cent to HK$347.20, and Wuxi Biologics advanced 1.5 per cent to HK$49.90 before both companies release earnings reports later today.
Geely Automobile surged 2.7 per cent to HK$9.76 after reporting a consensus-beating net income for 2022. Peer BYD jumped 2.1 per cent to HK$206.20, while the home-grown electric vehicle (EV) trio Xpeng, Nio and Li Auto gained 1.8 to 5.6 per cent.
US Treasury Secretary Janet Yellen said on Tuesday the government is prepared to intervene further if smaller banks suffer deposit runs, restoring calm to a financial market rattled after the Credit Suisse crisis. A gauge of market volatility in Hong Kong retreated on Wednesday after spiking to a three-month high amid the global banking turmoil.
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