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Hong Kong Market gains on Fed dovish signal

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The Hong Kong share market inclined on Thursday, 11 July 2019, as risk sentiments underpinned on tracking rallies on Wall Street overnight after the Federal Reserve chief cemented expectations of a U. S. rate cut later this month. However, market gains capped as investors remained cautious about China's economic outlook and worried that the coming hot tech board called Star in Shanghai is draining money from other shares. At closing bell, the Hang Seng Index advanced 0.81%, or 227.11 points, to 28,431.80. The Hang Seng China Enterprises Index was up 0.77%, or 82.09 points, to 10,784.01.

U. S. stocks ended higher on Wednesday and the S&P 500 briefly crossed the 3,000-point mark for the first time following Powell's remarks. The S&P 500 closed 0.5% higher at 2,993.07. The Dow Jones Industrial Average climbed 76.71 points to finish at 26,860.20, while the Nasdaq Composite saw a record close at 8,202.53.

In testimony to the House Financial Services Committee, Fed Chair Powell said business investments across the U. S. have slowed notably recently as uncertainties over the economic outlook linger. Many FOMC participants saw that the case for a somewhat more accommodative monetary policy had strengthened, Powell said in prepared remarks. Powell said the central bank stands ready to "act as appropriate" to support a record-breaking leg of U. S. economic growth. Powell's remarks confirming market expectations for a rate cut at the Fed's two-day meeting ending July 31

Blue chips were mostly higher.

HSBC (00005) edged up 0.5% to HK$65.2. HKEX (00388) added 1% to HK$273.4. Tencent (00700) nudged up 0.1% to HK$357.2. China Mobile (00941) inched up 0.1% to HK$70.2. AIA (01299) put on 1.3% to HK$84.35.

Shares of property developers rose on hopes of a US rate cut by the end of this month. Wharf REIC (01997) rose 1% to HK$52.9. Henderson Land Development (00012) climbed 1.7% to HK$43.2. Sun Hung Kai Properties (00016) shot up 2.2% to HK$134.6. Swire Properties (01972) advanced 1.4% to HK$31.7. Kerry Properties (00683) surged 2.1% to HK$33.75. New World Development (00017) ascended 1.6% to HK$12.4. Hang Lung Properties (00101) marched 1.3% to HK$19.08. CK Asset (01113) gained 1.3% to HK$60.45.

Shares of Johnson Electric plunged 13.4 per cent to HK$15.02 after it said in an exchange filing after market close Wednesday that sales for the quarter ended June 30 were down 12 per cent from a year ago, to US$767 million.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, July 11 2019. 17:11 IST