The Hang Seng Index rose 1.4 per cent to 18,461.65 at 10am. The benchmark has risen 20 per cent from a January low and has now entered what is defined as bull-market territory. The Hang Seng Tech Index 2 per cent after Apple’s board approved an additional US$110 billion in share repurchases.
Index heavyweights Tencent and Alibaba topped the turnover list. Tech giant Tencent rose 0.8 per cent to HK$363.20 and e-commerce major Alibaba added 3.3 per cent to HK$78.60.
China’s onshore stock exchanges are closed for the week, but sentiment remains upbeat after China’s top policymakers signalled further support to economic growth at the Politburo meeting on April 30.
“The meeting statement hinted at potential interest rate and RRR cuts to lower financing costs and support the real economy,” said BofA Securities in a note. “Such measures seek to lower the funding cost of private businesses more effectively. Depending on the details and scale of implementation, these policy measures will likely offer more support to sequential growth stabilisation.”
Banking shares extended gains, with China Construction Bank rising 1.6 per cent and Industrial and Commercial Bank of China 1.4 per cent higher. Insurance stocks also rose, with AIA jumping 2.2 per cent to HK$60.65 and Ping An rising 1.6 per cent HK$38.60.
“We think Powell unequivocally managed to downplay the possibility that the next move by the Fed is that of a rate hike,” said Nomura strategist Chetan Seth. “This would come as a relief for stocks.”
Other major Asian markets were broadly higher. Australia’s S&P/ASX 200 rose 0.6 per cent, South Korea’s Kospi edged up 0.1 per cent and Japan’s Nikkei 225 dipped 0.1 per cent amid speculation the central bank had intervened to stem a rapid decline in the yen currency.
