Central banks have helped supercharge a rebound in Hong Kong stocks.
The Hang Seng Index jumped 5% this week, beating all other 93 major benchmarks tracked by Bloomberg. That’s its best weekly rally since early November. The Hang Seng Enterprises Index was a close second, adding 4.8%. The Hong Kong dollar strengthened towards the midpoint of its trading band with the greenback, a level it hasn’t breached since September.
Supporting sentiment was the Federal Reserve’s dovish tone and signals from Donald Trump that his administration’s relationship with China is improving. For a city that’s entwined with U.S. monetary policy and China’s slowing economy, next week’s Group of 20 summit could make or break the recovery in Hong Kong stocks. As one of Asia’s largest equity markets, Hong Kong is seen as a barometer of global liquidity expectations and macroeconomic concerns.
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