Hong Kong Market surges on cooler US inflation data, China eases Covid measures

Hong Kong share market finished session sharply higher on Friday, 11 November 2022, recouping losses in the previous three sessions, amid bottom fishing across the board on tracking an overnight surge on Wall Street on spurring hopes that the Federal Reserve might scale down the size of its future interest rate increases after cooler-than-expected U.S. inflation data in October.

Also, boosting market sentiments was reports stated Chinese health authorities eased some of the COVID-19 curbs, including shortening quarantine times for close contacts of cases and inbound travelers.

At closing bell, the benchmark Hang Seng Index spurted 1,244.62 points, or 7.74%, to 17,325.66. The Hang Seng China Enterprises Index surged 450.18 points, or 8.31%, to 5,867.31. Overnight on Wall Street, U.S. stocks jumped as consumer prices rose less than expected in October, pushing the annual increase below 8% for the first time in eight months, the strongest signs yet that inflation was slowing.

 

Chinese state media announced on Friday that the country will reduce quarantine time for international travelers by two days. The revised rules state travelers will be required to stay at a quarantine facility for five days, shorter than the previous period of seven days, with a three day period of home observation.

Back to home, travel-related stocks jumped after reports that Beijing easing of its stringent Covid measures. Shares of Cathay Pacific jumped almost 3%, Air China rose more than 2%, China Eastern Airlines rose 6% shortly after the announcement. China Southern Airlines also gained more than 3%. Casino operators MGM China rose 8.4%, Wynn Macao rose 8.1%, Sands China jumped more than 11%, and Galaxy Entertainment rose 7.6%.

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