Hong Kong stocks head for biggest weekly gain in nearly 5 months

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Hong Kong stocks rose, with the city’s benchmark heading for its biggest weekly gain in nearly five months, taking cues from a global rally

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Exchange Square in Hong Kong. Photo: Bloomberg

Zhang Shidongin Shanghai

Published: 10:26am, 20 Sep 2024Updated: 12:25pm, 20 Sep 2024

Hong Kong stocks rose, with the city’s benchmark heading for its biggest weekly gain in nearly five months, taking cues from a global rally amid optimism that the US economy will achieve a soft landing.

The Hang Seng Index climbed 1.5 per cent to 18,275.14 at the noon break. It has advanced 5.2 per cent this week, on course for the best performance for a five-day period since April 26. The Hang Seng Tech Index gained 1.8 per cent and the Shanghai Composite Index retreated 0.2 per cent.

Among gainers, CSPC Pharmaceutical Group rallied 7.5 per cent to HK$5.04 after saying it would spend no more than HK$5 billion (US$641.7 million) on repurchasing its shares over the next two years. Alibaba Group Holding added 2.5 per cent to HK$87.80 and Meituan climbed 1.1 per cent to HK$135.30.

Other major Asia-Pacific markets edged higher. Japan’s Nikkei 225 climbed 1.8 per cent, South Korea’s Kospi rose 0.9 per cent and Australia’s S&P/ASX 200 added 0.4 per cent.

The S&P 500 finished 1.7 per cent higher overnight, achieving its 39th record close this year. A drop in US jobless claims to the lowest point since May revealed resilience in the labour market despite a slowdown in hiring. That alleviated concerns that the Federal Reserve might have been behind the curve in cutting rates on Wednesday.