Hong Kong Stocks Surge on U.S. Rate Cut Hopes and Midea Group's Upbeat Debut

Hong Kong stocks climbed in a holiday-thinned trade, driven by local property giants and an optimistic listing of Chinese home appliances maker Midea Group. The Hang Seng index increased by 237.90 points, closing at 17,660.02. Expectations of a significant interest rate cut by the Federal Reserve boosted sentiment.

Hong Kong stocks witnessed an upward trend in holiday-thinned trade on Tuesday, largely driven by local property giants on hopes of an oversized interest rate cut by the Federal Reserve. Additionally, the buoyant listing of Chinese home appliances maker Midea Group added to the positive market sentiment.

At the close of trade, the Hang Seng index showed a gain of 237.90 points, or 1.37%, finishing at 17,660.02. The Hang Seng China Enterprises index also rose by 1.41% to end at 6,176.03. Midea Group saw a substantial leap, climbing up to 9.5% and closing 7.8% higher in its Hong Kong debut, marking the city's largest share offering in nearly four years after raising almost $4 billion.

Local Hong Kong property firms broadly advanced as investors speculated that the sector would be the primary beneficiary from a likely U.S. rate cut. Companies like New World Development, CK Asset, and Wharf Real Estate Investment Company reported gains of 5.5%, 4.4%, and 3.9% respectively. Meanwhile, the Hang Seng Tech Index rose by 1.1%, the energy share index increased by 1.5%, and the financial sector saw a 1.55% rise.

(With inputs from agencies.)