Hong Kong stocks gain as PBOC's benchmark-rate choice spurs optimism on economy
Hong Kong
stocks rose on Friday, paring the week's losses as China's decision to stand pat on a benchmark interest rate offered optimism that a recovery in the world's second-largest economy would hold up.
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The Hang Seng Index climbed 0.6 per cent to 23,372.46 as of 10.10am local time, trimming the weekly loss to 2.1 per cent. The Hang Seng Tech Index gained 0.5 per cent. On the mainland, the CSI 300 Index and the Shanghai Composite Index added at least 0.1 per cent.
Sunny Optical Technology Group advanced 3.7 per cent to HK$65 and sportswear maker Li Ning rallied 2.8 per cent to HK$15.42. China Life Insurance added 2.5 per cent to HK$18.20. Alibaba Group Holding rose 0.4 per cent to HK$110.40.
China left the one-year loan prime rate at 3 per cent this month, and the five-year rate at 3.5 per cent, according to the central bank. The People's Bank of China has refrained from cutting the interest rate aggressively, stirring expectations that the economy has been riding out headwinds such as tariffs from the US and a downturn on the property market.
Other major Asian markets were mixed. Japan's Nikkei 225 slipped 0.1 per cent and Australia's S&P/ASX 200 lost 0.7 per cent, while South Korea's Kospi rose 0.9 per cent.
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