Hong Kong shares end higher on tech boost

The Hang Seng index rose 0.7% to end at 23,072.86, while the China Enterprises Index gained 0.7% to 8,068.93. ** A "very tight" job market and unabated inflation might require the Federal Reserve to raise interest rates sooner than expected and begin reducing its overall asset holdings as a second brake on the economy, U.S. central bank policymakers said in their meeting last month.

Hong Kong shares closed higher on Thursday, as gains in tech stocks during the later trading hours helped the benchmark reverse earlier losses. The Hang Seng index rose 0.7% to end at 23,072.86, while the China Enterprises Index gained 0.7% to 8,068.93.

** A "very tight" job market and unabated inflation might require the Federal Reserve to raise interest rates sooner than expected and begin reducing its overall asset holdings as a second brake on the economy, U.S. central bank policymakers said in their meeting last month. ** The more hawkish-than-expected views of U.S. central bank officials pushed Treasury yields higher, and weighed down Hong Kong market in the morning session.

** Activity in China's services sector expanded at a faster pace in December amid higher demand and easing inflationary pressure but continuing small-scale COVID-19 outbreaks weighed on the outlook, a private sector survey showed. ** The Hang Seng Tech Index gained 1.4%, with Alibaba Group, Meituan and Tencent Holdings up 5.7%, 3.6% and 1.5%, respectively.

** The three tech giants, also index heavyweights, are the biggest point contributors lifting the Hang Seng. ** Hang Seng Commerce & Industry index added 1.7%, while the utilities subindex declined 2.2%.