Hong Kong: Fed's recovery optimism lifts stocks higher

[SHANGHAI] Hong Kong stocks ended higher on Thursday, as the new Federal Reserve policy statement marked a strong vote of confidence that the US recovery is on track, while domestic tech shares climbed on report of more policy support from Beijing.

At the close of trade, the Hang Seng index was up 121.75 points or 0.43 per cent at 28,558.59. The Hang Seng China Enterprises index ended 0.25 per cent higher.

The sub-index of the Hang Seng tracking energy shares traded steady, while the IT sector rose 0.29 per cent, the financial sector ended 0.09 per cent lower and the property sector dipped 0.24 per cent.

The top gainer on the Hang Seng was BYD, which gained 8.25 per cent, while the biggest loser was Haidilao International Holding, which fell 3.68 per cent.

The Fed on Wednesday began closing the door on its pandemic-driven monetary policy as officials projected an accelerated timetable for interest rate increases, opened talks on how to end crisis-era bond-buying, and said the 15-month-old health emergency was no longer a core constraint on US commerce.

"The outcome was in line with market expectations," brokerage firm Guodu Hong Kong noted in a report.

The Hang Seng tech index closed 0.9 per cent higher after Bloomberg News reported that China's economic czar has been tapped to spearhead the development of so-called third-generation chip production.

China's top chipmaker Semiconductor International Manufacturing Corp ended 5.4 per cent higher.

China's main Shanghai Composite index closed 0.21 per cent firmer at 3,525.60 points, while the blue-chip CSI300 index ended 0.42 per cent stronger.

Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.49 per cent.

The yuan was quoted at 6.4288 per US dollar at 8.22am, 0.5 per cent weaker than the previous close of 6.3969.

At close, China's A-shares were trading at a premium of 37.91 per cent over Hong Kong-listed H-shares.

REUTERS