Hong Kong: Stocks firm after Fed rate hike ends market uncertainty
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[HONG KONG] Hong Kong stocks were higher on Thursday, tracking global markets, as the US rate hike ended months of speculation about the Federal Reserve's policy intentions.
The Hang Seng index rose 0.8 per cent, to 21,872.06, while the China Enterprises Index gained 1.3 per cent, to 9,666.52 points.
Total trading volume of companies included in the HSI index was 1.7 billion shares.
Investors found relief as the Fed's rate decision and guidance removed one of the biggest uncertainties haunting markets for some time.
The rate hike had been fully anticipated, so "emerging market assets would likely rebound" after the decision, HFT Investment Management Co said in a note to clients.
However, the asset manager warned that in the long-term, emerging markets assets would be under pressure due to the rising rates.
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In the wake of the Fed rate hike, Hong Kong's central bank on Thursday also raised the base rate it charges through its overnight discount window, a move that is expected to put pressure on property prices in the city.
REUTERS
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