Hong Kong Stocks Surge as Gold and AI Developments Fuel Market Optimism

Hong Kong stocks soared to their highest level in over four years, driven by Wall Street gains and a gold rally. The Hang Seng Index rose 2.58%, the highest since July 2021. Gold breached $5,200 amid a weaker dollar. The U.S. dollar softened before the Federal Reserve's interest rate decision.

On Wednesday, Hong Kong stocks achieved a significant milestone, closing at a 4-1/2-year high due to Wall Street's positive momentum and a substantial rally in gold prices. The Hang Seng Index climbed 2.58%, marking its highest finish since July 2021.

Energy and materials stocks were the top performers, with sub-indexes in these sectors jumping by 4.35% and 5.39%, respectively. Gold's breakthrough above $5,200, coupled with a declining U.S. dollar, attracted investor attention amid ongoing geopolitical tensions.

In China, the market received a boost from property developer China Vanke's gains, Nvidia's AI chips' importation approval, and the looming Federal Reserve interest rate decision. Analysts from SDIC Securities anticipate Fed Chair Jerome Powell's guidance on potential interest rate cuts.

(With inputs from agencies.)