Hong Kong Stock Rally Amid U.S. Government Shutdown End

Hong Kong's share index hit a one-month high as hopes rose for the end of the U.S. government shutdown. Meanwhile, focus shifts towards U.S. and Chinese economic metrics, with attention on monetary policy. Mainland China shares fell while expectations for Fed rate cuts and Chinese economic data loomed.

Hong Kong's benchmark share index surged to a one-month high on Wednesday, as optimism around the expected resolution of the prolonged U.S. government shutdown took center stage. Market participants are turning their focus back to economic fundamentals, even as mainland China shares faced declines.

Members of the House of Representatives returned to Washington after a 53-day hiatus, braving congested airports to cast pivotal votes intended to conclude the longest U.S. government shutdown. The Hang Seng Index reached 27,016.4 points during morning trades, marking its highest level since early October, though it settled at 26,863.26 by midday.

The mainland's Shanghai Composite index dropped by 0.23% with the CSI300 index experiencing a 0.43% decline. Financial experts anticipate modest Fed rate reductions, while China's central bank aims to maintain loose monetary policies to mitigate persisting economic challenges and weak domestic demand.

(With inputs from agencies.)