Hong Kong Shares Rise with Fed Rate Cut Hopes, China Stocks Fall

Hong Kong shares climbed on Thursday, influenced by rising expectations of a U.S. Federal Reserve rate cut in September. Meanwhile, China stocks saw declines. The Hang Seng index rose by 0.28%, while significant growth was noted in the energy and IT sectors. Conversely, the Shanghai Composite index fell by 0.54%.

Reuters | Updated: 06-06-2024 14:12 IST | Created: 06-06-2024 14:12 IST
Hong Kong Shares Rise with Fed Rate Cut Hopes, China Stocks Fall
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Hong Kong shares closed up on Thursday, tracking Asian markets higher on growing expectations that the U.S. Federal Reserve will likely cut interest rates in September, while China stocks closed down.

Expectations of Fed rate cuts in September rose after data this week hinted the U.S. labour market was easing. The Euro advanced ahead of the European Central Bank policy meeting, in which a rate cut is widely expected. Also helping sentiment was a private sector survey released on Wednesday that showed China's services activity in May accelerated at the quickest pace in 10 months. Staffing levels expanded for the first time since January, pointing to a sustained recovery in the second quarter.

** At the close of trade, the Hang Seng index was up 51.84 points or 0.28% at 18,476.80. The Hang Seng China Enterprises index rose 0.19% to 6,555.06. ** The sub-index of the Hang Seng tracking energy shares rose 2.5%, while the IT sector rose 0.44%, the financial sector ended 0.02% lower and the property sector dipped 0.61%.

** The Shanghai Composite index ended down 0.54% at 3,048.79. ** The blue-chip CSI300 index was down 0.07%, with its financial sector sub-index lower by 0.51%, the consumer staples sector down 0.48%, the real estate index down 0.58% and the healthcare sub-index down 0.91%.

** The smaller Shenzhen index ended down 1.68% and the start-up board ChiNext Composite index was weaker by 0.715%. ** Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.96%, while Japan's Nikkei index closed up 0.55%.

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

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