09.09.202508:16:48UTC+00Hang Seng Jumps to Finish at 4-Year Peak

On Tuesday, the Hang Seng Index surged by 304 points, equivalent to a 1.2% increase, concluding at 25,938. This marks the third consecutive session of gains, driving the index to a four-year peak, with robust performance across various sectors. Market sentiment improved significantly, fueled by speculations of a potential U.S. rate cut anticipated as soon as next week, following weaker-than-expected U.S. employment data. Additionally, Wall Street's positive momentum, which pushed the Nasdaq to a record high on Monday, contributed to the optimistic outlook. The rally was predominantly led by property stocks, which rose by 1.8%, influenced by Shenzhen's relaxation of home purchase restrictions. Further bolstering sentiment were reports of China renewing bilateral currency swap agreements with several European central banks, including the ECB and SNB. However, anticipation of the upcoming August Consumer Price Index (CPI) and Producer Price Index (PPI) data in China restrained further gains, as concerns over deflation risks persisted following stagnant consumer prices in July and the 34th consecutive decline in producer prices. Noteworthy performers included Country Garden Holdings, which soared by 23.5% due to its inclusion in the Stock Connect program, along with robust performances from Alibaba Health (up 9.7%), JD Health International (up 6.7%), Kuaishou Technology (up 3.7%), and China Overseas Land (up 3.3%).