Hong Kong stocks extend from 3-year high on China growth optimism
stocks kicked off the week's trading on a strong note on Monday, with the benchmark extending the gain from a
three-year high on Friday as optimism about the resilience of China's growth and the risk-on mood in global stocks boosted sentiment.
The Hang Seng Index rose 0.3 per cent to 24,899.49 as of 10.04am local time, heading for the highest close since January 21, 2022. The Hang Seng Tech Index gained 0.4 per cent. The city's financial markets opened for trading despite the aftermath of Typhoon Wipha on Sunday, which triggered the highest warning signal, injured dozens of people and halted flights.
On the mainland, the CSI 300 Index climbed 0.3 per cent, and the Shanghai Composite Index added 0.4 per cent.
Meituan rallied 4.2 per cent to HK$132.70, and Alibaba Group Holding gained 2.2 per cent to HK$118.30. PetroChina advanced 3.1 per cent to HK$4.48, and Sinopec added 3.2 per cent to HK$4.47.
Investors moved on from uncertainty over tariff talks between the US and its global trading partners, as China reported faster-than-expected 5.3 per cent economic growth in the second quarter, aligning with its full-year growth target of around 5 per cent. US stocks closed at record highs last week, as the Goldilocks scenario took hold after official data showed robust retail sales and cooling inflation.
China's central bank left the one-year and five-year prime loan rates unchanged for this month, indicating the economic recovery could still have legs.
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