Hong Kong Market ends at six-week high

Hong Kong stock market finished session higher on Thursday, 29 April 2021, extending gains from the previous session, on following a dovish outlook from the Federal Reserve and as the U.S. president outlined a fresh $1.8 trillion stimulus plan.

At closing bell, the benchmark Hang Seng Index was up 0.8%, or 231.92 points, to 29,303.26, the highest level since March 18. The Hang Seng China Enterprises Index advanced 0.32%, or 35.19 points, to 11,049.88.

President Joe Biden proposed his sweeping new plan in a speech to a joint session of Congress on Wednesday, including $1 trillion in spending on education and healthcare over 10 years and $800 billion in tax credits aimed at low- and middle-income families.

 

Biden's speech came after Fed Chairman Jerome Powell said on Wednesday that "it is not time yet" to begin discussing any change in policy after the U.S. central bank left interest rates and its bond-buying programme unchanged.

Hong Kong's monetary authority, which runs its rate policy in lockstep with the Fed to preserve the city's dollar peg, said the decision was expected. Money markets have been operating smoothly, with ample liquidity while the local exchange rate and interest rates remained steady, it added.

Tech stocks advanced, with computer maker Lenovo rising 1.3% to HK$10.56 while NetEase gained 2.6% to HK$179.40. Traders were encouraged by market-beating quarterly revenue at Apple and Facebook, while Samsung earnings topped consensus.

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