22.08.202502:51:39UTC+00Hong Kong Shares Rise But Head for Weekly Drop

Hong Kong's stock market saw an uptick of 89 points or 0.3%, reaching 25,191 in Friday's early trading session. This positive movement was driven by gains across most sectors, allowing the market to rebound from the losses sustained in the previous session, despite the overnight downturn on Wall Street. Investors eagerly anticipated Federal Reserve Chair Jerome Powell’s address at the Jackson Hole symposium, and market sentiment was buoyed by the prospect of new stimulus measures from Beijing, following a deceleration in China's economic activity in July.

In a bid to invigorate the economy, the Chinese government is set to introduce a one-year consumer loan subsidy starting September, covering 90% of interest expenses, with additional support from local authorities. On the domestic front, Hong Kong's annual inflation rate fell to a four-year low of 1.0% in July, marking the third consecutive month of declining inflation. Leading the charge in gains, Semiconductor Manufacturing International Corporation (SMIC) rose by 5.9%, while Wuxi Biologics saw an increase of 2.9%, followed by Kuaishou Technology at 2.8%, and Xiaomi Corporation at 2.0%.

Despite these gains, the Hang Seng Index is on pace for its first weekly decline in three weeks, down roughly 0.4% so far. This downturn is attributed to the rising unemployment rate in Hong Kong, which escalated to 3.7% over the three months ending in July, the highest level observed in two and a half years.