Hong Kong stocks surge as global equities rally

As the financial hub resumed after a holiday, Hong Kong stock markets surged, playing catch-up to the rally in global equities.

The Hang Seng Index jumped by 4.4% in early trading on Wednesday. A gauge of Chinese technology stocks in the city rallied more than 5%. Since April 2020 on Tuesday, an index of global stocks soared the most since April 2020, when Hong Kong was shut, as weak US economic data spurred hopes that the Federal Reserve will be less aggressive in raising interest rates.

Kerry Goh, chief investment officer at Kamet Capital Partners Pte said that this might be a short squeeze after a terrible quarter and so many months of bad performance. Volumes are thin with mainland markets out, which is exacerbating the moves. HSBC Holdings Plc and Alibaba Group Holding Ltd. gave the biggest boost to the Hang Seng Index while the shares of property developers were underperformed.