Hong Kong Market climbs as Fed maintains 2024 policy easing path

Hong Kong share market finished session strongly in positive territory on Thursday, 21 March 2024, as risk sentiments underpinned on tracking a record on Wall Street overnight after the Federal Reserve kept interest rates unchanged and continued to signal that three rate cuts this year, easing fears that the recent bout of inflation would force the central bank to lean less dovish.

The US Federal Reserve left the target rate unchanged at 5.25% to 5.5% in second policy meeting of the year and projected three interest rates cuts this year saying inflation pressures had eased substantially. in the United States. Fed's statement was viewed as slightly dovish as markets had braced for the possibility that policymakers could trim the number of projected rate cuts this year.

The Hong Kong Monetary Authority (HKMA), whose policy moves in lock-step with the US Fed due to the citys currency peg, left its base rate unchanged at 5.75% on Thursday.

At closing bell, the benchmark Hang Seng Index surged by 320.03 points, or 1.93%, to 16,863.10. The Hang Seng China Enterprises Index added 101.28 points, or 1.75%, to 5,905.27.

Among blue-chips, Alibaba added 1.8% to HK$72.55 and its rival JD.com climbed 2.3% to HK$109.40. Henderson Land advanced 4.5% to HK$23 and CK Asset jumped 2.8% to HK$36.80.

Shares of Tencent jumped 0.8% at HK$291.20, as the gaming giant said it will double the share-buy backs to more than HK$100 billion, after both annual and quarterly results miss estimates.

Shares of fertiliser producer Migao Group gained 0.3% over its IPO price to close at HK$4.09 per share on its trading debut in Hong Kong.

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