Hong Kong stocks lead the way with gains led by technology and banking sectors.Expectations swirl for support for China policy
The Hang Seng Index rose 1.1% to 18,413.79 at the midday trading break. The benchmark has risen 20% from January's lows, entering territory defined as a bull market. The Hang Seng Tech Index rose 2% after Apple's board approved an additional $110 billion in share buybacks.
Stock index powerhouses Tencent and Alibaba topped the sales list. Tencent rose 0.8% to HK$363.20, while Alibaba rose 3.5% to HK$78.75.
China's land-based stock exchanges are closed this week, but sentiment remains upbeat after Chinese policymakers signaled more support for economic growth at a Politburo meeting on April 30.
“The April Politburo meeting statement reflects a strong commitment to promoting growth, especially in the discussion of potential real estate inventory reduction measures,” BNP strategists said in a note released Friday. “The tone of the statement clearly strengthens from the cautious approach outlined at the National People's Congress, and is a precondition for the bullish equity stance highlighted in the Q2 2024 World Outlook.”
Bank stocks also rose, with China Construction Bank up 0.8% and Industrial and Commercial Bank of China up 1.2%. Insurance stocks also rose, with AIA up 3% to HK$61.15 and Ping An up 2.4% to HK$38.90.
“We think Chairman Powell has clearly succeeded in downplaying the possibility that the Fed's next action will be to raise rates,” said Chetan Seth, a strategist at Nomura. “This should be reassuring for the stock price.”
Other major Asian markets generally rose. Australia's S&P/ASX 200 rose 0.5% and South Korea's Kospi rose 0.3%.
