FX.co ★ Fed Cut Bets and Tech Rally Bring Hang Seng to Over 4-Year High

The Hang Seng Index surged by 470 points, or 1.8%, closing at 26,908 on Wednesday. This rise marked the index's highest point since mid-July 2021, recovering from a lackluster performance in the previous session. Investor sentiment was buoyed by expectations of an anticipated Federal Reserve interest rate cut set to be announced later today, alongside speculation of further monetary easing within the year. The technology sector led the rally with a remarkable 4.3% gain, fueled by optimism regarding China's advancements in artificial intelligence and indications of easing trade tensions with the United States, particularly in light of an upcoming discussion between President Trump and Xi Jinping scheduled for Friday. Consumer stocks also made significant strides following comments from Hong Kong leader John Lee in his 2025 policy address, where he committed to enhancing citizens' livelihoods, encouraging new investment, boosting tourism, and advancing innovation and technology infrastructure. Notably, he also suggested the possibility of conducting some government transactions in yuan for the first time. Among individual stocks, Nio soared by 11% following strong sales figures and plans for a new SUV launch, while Shandong Hi-Speed surged 17.6% on the back of a share buyback plan. Other significant gainers included SMIC with a 7.2% increase, Meituan up by 5.1%, Kuaishou Technology climbing by 3.3%, and Tencent Holdings rising by 2.6%.