Hong Kong stocks rise cautiously on improved earnings expectations and policy support hopes

From South China Morning Post: 2024-05-12 22:53:40

Hong Kong stocks cautiously rose on expectations of improved corporate earnings and policy support after weak credit expansion data in China’s economy. Hang Seng Index and Hang Seng Tech Index both gained, led by Alibaba and Tencent ahead of earnings announcements. Government initiatives and strong corporate earnings outlook are driving the rally.

China’s aggregate financing recorded a decline in April, raising concerns about high interest rates impacting the economy. Meanwhile, producer prices fell for the 19th consecutive month while consumer inflation picked up. Investors are closely watching key economic data releases this week, including home prices and industrial production figures.

ESR Group was suspended from trading pending merger announcement, while Reach Machinery surged on its debut in Shenzhen. In contrast, other major Asian markets saw mixed performance, with Japan’s Nikkei 225 slightly up and South Korea’s Kospi and Australia’s S&P/ASX 200 dipping.



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