Hong Kong stocks extend rally as Fed's less hawkish than feared tone

Hong Kong stocks kick started May on a strong note on Thursday, after less hawkish than expected comments from the Federal Reserve, while Beijing vowing to step up economic support also buoyed sentiment. Hang Seng Index jumped 2.2% by midday, led by gains in technology, property and financial stocks.

Hong Kong stocks kick started May on a strong note on Thursday, after less hawkish than expected comments from the Federal Reserve, while Beijing vowing to step up economic support also buoyed sentiment.

Hang Seng Index jumped 2.2% by midday, led by gains in technology, property and financial stocks. Chinese markets are closed for holidays from May 1-3.

Indexes tracking Hong Kong-listed Chinese tech giants and Chinese property developers surged 4%, each. U.S. stock and bond prices turned higher overnight after Fed's comments were seen less hawkish than feared. Fed Chair Jerome Powell preached patience that may delay rate cuts, but also means a high bar for any more hikes.

China vowing to step up support for the economy with prudent monetary and proactive fiscal policies, including interest rates and bank reserve requirement ratios, also boosted investor sentiment. ** By midday break, Chinese H-shares listed in Hong Kong rose 2.34% to 6,420.83, while the Hang Seng Index was up 2.21% at 18,155.28.

** The sub-index of the Hang Seng index tracking energy shares dipped 1.5% while the IT sector rose 4%. ** The top gainer on the Hang Seng was Country Garden Services Holdings Co Ltd, up 11.74%, while the biggest loser was PetroChina Co Ltd, which was down -3.12%.

** Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.65% while Japan's Nikkei index was down 0.01%.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)