The Hang Seng Index climbed 0.6 per cent to 26,858.53 as of 11.30am local time, heading for the highest close since October 6. The Hang Seng Tech Index fell 0.5 per cent. On the mainland, the CSI 300 Index dropped 0.4 per cent and the Shanghai Composite Index lost 0.2 per cent.
Aluminium maker China Hongqiao Group advanced 3.8 per cent to HK$33.60 after the metal touched a one-year high on the Shanghai Futures Exchange. E-commerce giant JD.com added 1 per cent to HK$124.30 after its sales hit a record during the annual Singles’ Day shopping festival on Tuesday. Its affiliate JD Health International rallied 4.2 per cent to HK$64.05. Tencent Holdings added 0.7 per cent to HK$645.50 and HSBC Holdings rose 0.9 per cent to HK$113.40.
The record US shutdown may end as soon as Wednesday after the Senate passed a temporary funding bill, buoying stocks. A private jobs report showed US companies cut 11,250 jobs per week on average in the four weeks up to October 25, boosting the chances of a Fed rate cut at the US central bank’s next policy meeting in December.
A reopening of the US government will enable investors to access official economic data on the labour market and inflation, helping them to get a more accurate picture of the economy and recalibrate their asset allocations. The resumption of data supply will also be a boon to the Fed, which has been relying on private reports over the past 40 days.
In China, a persistent deflationary trend has shown some signs of easing, with consumer prices returning to growth in October and declines in producer prices narrowing.
