Hong Kong stocks extend winning streak on Fed's less hawkish tone

Hong Kong stock market: Hong Kong's stock market commenced May on a robust footing, spurred by the US Federal Reserve's unexpectedly dovish stance and Beijing's commitment to bolster economic support.

The Hang Seng Index (HSI) concluded the trading session with a notable 2.5 per cent surge, marking its eighth consecutive day of gains. Notably, technology, property, and financial sectors led the rally, contributing to the index's upward trajectory.

Chinese markets remained closed for holidays from May 1-3, allowing Hong Kong to take the spotlight. Indexes tracking Hong Kong-listed Chinese tech giants and property developers notably surged by more than 4 per cent each, reflecting investor optimism.

Shares of Standard Chartered saw a substantial uptick of 6 per cent following its first-quarter profit outperforming forecasts, further fueling market buoyancy.

Overnight, US stock and bond prices experienced an uptick following the Fed's remarks, which were perceived as less hawkish than anticipated. Fed Chair Jerome Powell's emphasis on patience, potentially delaying rate cuts while maintaining a high bar for any further hikes, resonated positively with investors.

Additionally, China's commitment to ramp up economic support through prudent monetary and proactive fiscal policies, including adjustments to interest rates and bank reserve requirement ratios, contributed to bolstering investor sentiment.

At the close of Thursday's trading session, the Hang Seng Index (HSI) surged by 444.10 points, or 2.5 per cent, reaching 18,207.13. The Hang Seng China Enterprises Index (HSCE) also recorded a notable uptick, rising by 2.6 per cent to 6,437.09.

Among sectoral indices, the energy shares sub-index experienced a slight dip of 1.5 per cent, while the IT sector soared by 4.17 per cent, the financial sector ended 2.37 per cent higher, and the property sector rose by 2.82 per cent.

Notable gainers among H-shares included SenseTime Group Inc, which surged by 36.07 per cent, JD Health International Inc with a gain of 10.68 per cent, and Meituan, up by 8.77 per cent.

(With Reuters inputs.)