Hong Kong Shares Extend Gains on China PMI, Fed Cut Signals; Momentum Financial Soars on Bond Deal

Published on 08/05/2025 at 04:45 am EDT
(MT Newswires) -- Hong Kong stocks maintained their momentum on Tuesday as investors digested a milder pace of economic contraction in the city's private sector and a pickup in mainland China services activity, while signs of a potential US interest rate cut supported sentiment.
The Hang Seng Index marginally rose 169.08 points, or 0.7%, to 24,902.53, while the Hang Seng China Enterprises Index (HSCEI) gained 57.59 points, or 0.7%, to 8,951.07.
On the mainland, the S&P Global China General Services Business Activity Index climbed to 52.6 in July from 50.6, buoyed by stronger foreign demand, increased hiring, and rising business confidence.
The S&P Global Hong Kong SAR PMI rose to 49.2 in July from 47.8 in June, signaling a sixth straight month of contraction, with renewed job losses and weak sentiment amid subdued demand and trade concerns.
Meanwhile, US San Francisco Fed President Mary Daly signaled that with the US labor market showing signs of cooling and little evidence of sustained tariff-driven inflation, the time for interest rate cuts is approaching, Reuters reported.
In corporate news, Momentum Financial closed 241% higher, after it agreed to issue nearly HK$179 million in convertible bonds as part of a fresh restructuring agreement announced in July.

Sumber : MT Newswires