FX.co ★ Hong Kong Equities Hover at 7-Week Peak

In early trading on Wednesday, Hong Kong's stock market experienced a rise of 124 points, or 0.5%, reaching a seven-week peak of 23,806. This upward momentum extended from the previous day's gains, with the majority of sectors showing growth. The positive investor sentiment was bolstered by China's central bank, which lowered key lending rates for the first time in seven months in a move to stimulate economic growth and mitigate trade-related risks. Additionally, major state-owned banks in mainland China reduced their deposit rates, aiming to ease the pressure from narrowing interest margins. Despite these gains, there were some constraints due to a rise in Hong Kong's unemployment rate to 3.4% for the period ending in April—a peak not seen for over two years—and ongoing weakness in the Hong Kong dollar, which neared a 13-month low following recent actions by the Hong Kong Monetary Authority. Noteworthy performers included the automotive sector, with Li Auto's shares climbing 3.7% and Geely Auto's increasing by 3.1%. Pharmaceutical companies also saw impressive gains, notably Wuxi Biologics at 3.7% and Innovent Biologics at 2.7%.