The Hang Seng Index rose 0.5 per cent to 24,627.25 at the noon break. The Hang Seng Tech Index gained 0.9 per cent. On the mainland, the CSI 300 Index was little changed, and the Shanghai Composite Index added 0.2 per cent.
New Oriental Education and Technology Group jumped 4.6 per cent to HK$35.94 after saying that profit for the quarter ending in May increased 59 per cent from a year earlier. Zijin Mining rallied 1.9 per cent to HK$21.56 on a flight to gold in haven trade. Tencent Holdings rose 1.9 per cent to HK$545, and ICBC added 1.5 per cent to HK$6.07.
The probability of a quarter-point rate cut by the Federal Reserve in September rose to 80.8 per cent from 61.9 per cent a week ago, according to the CME Group. Some analysts are even anticipating the Fed may cut rates by half a point next month. The US central bank stood pat on the borrowing cost last week for a fifth meeting in a row.
A US interest-rate reduction may spur capital inflows to Asian markets and leave more room for China to ease its monetary policies. China’s central bank has been restrained in cutting borrowing costs this year on fear of a capital flight, though the economy is combating deflation and a downturn in the property market.
“Traders [are] betting big on a September rate cut that could rattle global yield differentials and, by extension, the dollar,” said Stephen Innes, a managing partner at SPI Asset Management in Bangkok. “Investors are still nibbling selectively on the dip, even if the broader tone remains tentative.”
