Hong Kong Stocks end higher

Hong Kong stock market finished volatile session higher on Wednesday, 17 March 2021, as investors braced for a meeting outcome of the US Federal Reserve for cues on whether it could start raising interest rates earlier than it had previously said.

At closing bell, the benchmark Hang Seng Index edged up 0.02%, or 6.43 points, to 29,034.12 after changing directions at least 10 times during the day. The Hang Seng China Enterprises Index added 026%, or 29.23 points, to 11,358.66.

Investors awaited news from the US Fed meeting. Market participants are speculating Fed officials may signal to lift short-term growth, inflation, and labour market outlook as the rollout of the coronavirus vaccine and President Joe Biden's $1.9 trillion stimulus package assists the nation's burgeoning economic recovery.

Market participants expects the quarterly statement from the Federal Open Market Committee would be key to setting the tone for the weeks and months ahead for other central banks - and in turn, investors.

If the Fed signals a shift in rate hike, U.S. yields would rise and negatively affect stock markets. Recent climbs in U.S. and other bond yields have increased concerns about the cost of corporate funding, weakening the relative attractiveness of equities.

Galaxy Entertainment Group and Budweiser Brewing gained more than 4 per cent and were among the best performers in Hong Kong, while Sunny Optical Technology Group and China Petroleum & Chemical led declining stocks, falling by at least 2.7 per cent.

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