Hong Kong Stocks Surge as European Rate Cut Looms

Hong Kong stocks soared on Monday, with the Hang Seng index poised for its best day in a month, driven by expectations of a European rate cut. Despite strong manufacturing data, Mainland China shares eased. Meanwhile, regional markets also experienced gains, influenced by positive sentiment regarding the ECB's anticipated rate reduction.

Reuters | Shanghai | Updated: 03-06-2024 10:10 IST | Created: 03-06-2024 10:10 IST
Hong Kong Stocks Surge as European Rate Cut Looms
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Hong Kong stocks jumped on Monday, with the benchmark Hang Seng index on course for its best day in a month, lifted by market prospects of a rate cut in Europe. Mainland China shares eased despite upbeat manufacturing data. Gains in the Hong Kong market were also tracking regional markets as sentiment was improved as the European Central Bank (ECB) is considered almost certain to trim rates by a quarter point to 3.75% on Thursday, the first time in history it would have eased ahead of the U.S. Federal Reserve.

In China, a private survey showed that manufacturing activity in May grew at the fastest pace in about two years with strong production and new orders. ** At the midday break, the benchmark Hang Seng Index was up 2.32% at 18,498.33 points, set for the biggest daily rise since May 2. And Chinese H-shares listed in Hong Kong rose 2.69% to 6,564.54 points.

** The Shanghai Composite index was down 0.51% at 3,071.02 points, while China's blue-chip CSI300 index was down 0.14% at 3,575.05 points. ** The smaller Shenzhen index was down 0.83%, the start-up board ChiNext Composite index was higher by 0.25% and Shanghai's tech-focused STAR50 index was up 0.59%.

** Around the region, MSCI's Asia ex-Japan stock index was firmer by 2.01%, while Japan's Nikkei index was up 1.22%. ** The yuan was quoted at 7.2455 per U.S. dollar, 0.04% weaker than the previous close of 7.2425.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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