The Hang Seng Index gained 0.8 per cent to 24,379.86 at 10.11am local time, heading for the highest close since March 19. The Hang Seng Tech Index rallied 1.9 per cent. On the mainland, the CSI 300 Index added 0.1 per cent while the Shanghai Composite Index was little changed.
Alibaba Group Holding advanced 1.7 per cent to HK$114.60 and Tencent Holdings climbed 0.3 per cent to HK$511. China’s biggest chipmaker SMIC jumped 3.6 per cent to HK$43.20 and Macau casino operator Sands China appreciated 4 per cent to HK$16.32.
Stocks in Hong Kong and around the region strengthened after the Nasdaq 100 surpassed its previous all-time high in February. Fed chair Jerome Powell struck a balanced tone on policy outlook in his testimony to US lawmakers, and traders stepped up bets on a rate cut in September. Oil prices tumbled after Israel and Iran agreed to a ceasefire.
Investment banks including KGI said the Hang Seng Index could extend its gain into the second half, aided by foreign capital inflows.
Two companies started trading in Hong Kong. CaoCao, the ride-hailing car platform under the Zhejiang Geely group, slumped 16 per cent to HK$35.45, while household appliance maker XJ Electrics slid 7.3 per cent to HK$2.65.
