Hong Kong’s Hang Seng Makes Most Progress in Three Months Thanks to Tech Boost

Jan. 12 (Reuters) – Hong Kong‘s main Hang Seng index recorded its biggest daily percentage gain in three months on Wednesday, as less belligerent-than-expected testimony from US Federal Reserve Chairman Jerome Powell rose technological actions in the region.

** At the close of trade, the Hang Seng Index (.HSI) was up 663.11 points or 2.79% to 24,402.17, its largest daily percentage increase since October 7.

** Tech companies led the gains, with an industry-tracking index (.HSTECH) also rising the most in three months to end up 5.64%.

** Tech companies are leading a global equity rebound after U.S. Federal Reserve Chairman Jerome Powell made less belligerent comments than expected in testimony to Congress. Read more

** The Hong Kong Tech Index has risen 4% so far this year after falling nearly a third in 2021 amid investor concerns over tighter regulatory controls.

** Investors were also encouraged by slower-than-expected producer price growth in China in December, which should provide more scope for monetary policy easing. Read more

** The Hang Seng China Enterprises Index (.HSCE) rose 2.91% to 8,612.85, its biggest daily percentage gain since December 7.

** The Continental Properties Index (.HSMPI) recorded a notable underperformance on Wednesday, falling 1.38% amid lingering concerns over developers’ ability to service their debts.

** Real estate companies controlled by developers Shimao Group Holdings, Kaisa Group Holdings and Greenland Group were named on a list of Chinese companies “consistently behind” on commercial paper payments. Read more

** The biggest winner on the Hang Seng was JD.Com Inc (9618.HK), which gained 10.98%, while the biggest loser was developer Country Garden Holdings Co Ltd (2007.HK), which gained fell 2.71%.

** The main Chinese Shanghai Composite Index (.SSEC) closed up 0.84% ​​at 3,597.43 points, while the leading CSI300 index (.CSI300) ended up 1%.

** Across the region, the MSCI Asia Ex-Japan Stock Index (.MIAPJ0000PUS) was firmer 1.53%, while the Nikkei Japan Index (.N225) closed up 1.92%.

Reporting by Andrew Galbraith; Editing by Simon Cameron-Moore

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