The Hang Seng Index rose 0.4 per cent to 25,170.96 as of 10.15am local time, heading for a 0.4 per cent gain for the week. The Hang Seng Tech Index added 0.6 per cent.
Mainland stocks stabilised after the biggest sell-off in five months. The CSI 300 Index climbed 0.5 per cent and the Shanghai Composite Index was little changed.
Tencent Holdings, the second-biggest weighting on the Hang Seng Index, fell 1 per cent to HK$598.50, while Meituan gained 1.5 per cent to HK$102.90. Xinyi Solar Holdings rallied 7 per cent to HK$3.69 on optimism that the downturn in the photovoltaic industry is behind it. Hang Lung Properties advanced 4.9 per cent to HK$8.39.
Sentiment on Hong Kong stocks recovered after the S&P 500 index rose to a record on Thursday, with traders pricing in a 99 per cent probability of a quarter-point cut in the borrowing cost at the Fed’s policy meeting on September 18. A private report showed that US payroll increases missed estimates, while jobless claims rose to the highest since June. All eyes will be on the official non-farm payroll report due Friday night, and a soft reading will cement a Fed cut, with some traders even expecting a half-point reduction.
Other major Asian markets mostly edged higher. Japan’s Nikkei 225 climbed 0.3 per cent and Australia’s S&P/ASX 200 added 0.4 per cent, while South Korea’s Kospi slipped 0.1 per cent.
