FX.co ★ Hong Kong Equities Surge to 2-Week Peak

Hong Kong stocks surged by 357 points or 1.4% to reach 25,324 during Wednesday morning trade, marking an extension of gains into a second consecutive session and achieving a two-week peak. This broad-based rally mirrored the significant overnight uptick in Wall Street, spurred by softer U.S. inflation figures, which have increased speculation that the Federal Reserve might reduce interest rates to aid a cooling labor market. Simultaneously, Chinese markets advanced to a three-year high, supported by a prolonged trade truce with the U.S. that helped avert triple-digit tariffs on Chinese exports. Additionally, Beijing introduced a year-long initiative providing interest subsidies on personal consumer loans. The scheme will see central and provincial governments bearing 90% and 10% of the costs, respectively, to stimulate household spending. In corporate developments, China Evergrande announced its Hong Kong shares would be delisted on August 25 following the exchange’s resolution. Tencent Holdings experienced a 2.1% climb to a four-year high due to appealing valuations, while WH Group (5.2%), Innovent Biologics (3.8%), and Chow Tai Fook (1.9%) also registered notable gains.