Hong Kong overtakes Japan as world's third largest stock market

[HONG KONG] Bragging rights to Hong Kong, for now.

The city's equity market has overtaken Japan to be the world's third largest in value, behind only the US and mainland China, courtesy of a rebound in Hong Kong stocks after their worst year since 2011.

Hong Kong's market cap was US$5.78 trillion as of Tuesday, the latest available data show, compared with US$5.76 trillion for Japan. The Asian city's benchmark Hang Seng Index climbed 17 per cent this year through Tuesday, when it closed at its highest since June 15. Internet giant Tencent Holdings Ltd has been the main driver with a 22 per cent gain. Japan's Topix Index advanced 8.3 per cent in that period.

Both markets declined Wednesday, as an economic outlook from the International Monetary Fund renewed concern about a slowdown in global growth and after the US threatened tariffs on the European Union. The Hang Seng Index slipped 0.1 per cent, still closing above the 30,000-point level that it broke through earlier this month. The Topix fell 0.7 per cent.

BLOOMBERG