Hong Kong stocks headed for the biggest weekly gain in six months after US inflation data solidified expectations of an interest-rate cut by the US Federal Reserve next week.
The Hang Seng Index rose 1.4 per cent to 26,450.16 as of 10.05am local time, taking the gain for the five-day period to 4 per cent and setting the benchmark on course for its highest close since August 21, 2021. The Hang Seng Tech Index gained 2.1 per cent.
On the mainland, the CSI 300 Index and the Shanghai Composite Index both climbed 0.3 per cent.
Alibaba Group Holding rallied 6.6 per cent to HK$152.70 and Baidu climbed 6.3 per cent to HK$113.30 after media reports said that the two companies had started using their in-house chips to train their artificial intelligence models. Tencent Holdings gained 2.7 per cent to HK$647 and toymaker Pop Mart International Group jumped 3 per cent to HK$281.20.
US consumer prices excluding food and energy rose 0.3 per cent month on month in August, in line with economists’ forecasts. Meanwhile, weekly jobless claims increased to the highest level in almost four years. The combination makes a quarter-point rate cut a near certainty at the Fed’s policy meeting next week, with traders now pricing in a 93 per cent chance.
Elsewhere in Asia-Pacific, Japan’s Nikkei 225 climbed 0.7 per cent, South Korea’s Kospi rose 1.2 per cent and Australia’s S&P/ASX 200 added 0.8 per cent.
