FX.co ★ Hong Kong Shares Rebound After China Data

Equity markets in Hong Kong experienced a notable upswing, climbing 334 points, or 1.3%, to reach 25,774 by midday on Wednesday. This rise ended a seven-day losing streak with gains seen across a diverse range of sectors. Investors were actively seeking bargains in the consumer, technology, and financial sectors following Chinese Premier Li Qiang's renewed plea to enhance consumption and his reiteration of Beijing's commitment to mitigate unregulated competition. Concurrently, U.S. stock futures saw a slight increase spurred by Federal Reserve Chair Jerome Powell's remarks which bolstered expectations for an interest rate reduction later this month. However, further increases were tempered by concerns over deflation as September data revealed a 0.3% year-over-year decline in China's consumer prices, exceeding the anticipated 0.1% decrease, while producer prices fell by 2.3%. This represented the smallest decrease in seven months but marked the third consecutive year of decline. On the corporate front, Sunac China Holdings saw a 3.9% increase following creditor approval of its restructuring plan. Other top performers included Mixue Group, which rose by 6.7%, Laopu at 6.6%, Pop Mart International with a 4.1% increase, and JD Health International which gained 3.6%.