The market was headed for a third straight week of gains, driven by bets on further stimulus from the Chinese government. Oil producing countries also rose amid supply concerns.
The Hang Seng Index rose 1.8% to 22,500.18 at the midday break after falling as much as 1.3% in early trading. The tech stock index rose 3.5%. Markets on the mainland will be closed until October 7 due to the public holiday.
WeChat owner Tencent rose 1.9% to HK$475.20. Alibaba rose 2.7% to HK$113, while e-commerce peer JD.com rose 7.1% to HK$182.50. Online travel agency Trip.com rose 5% to HK$533.
Pharmaceutical maker Wuxi Biologics rose 13.3% to HK$21.25, while Wuxi Aptech rose 13.3% to HK$21.25, and Wuxi Aptech rose 13.3% to HK$21.25 after media reports said it was considering selling some of its businesses after becoming subject to the US national security bill. It rose 16.2% to HK$69.95.
“Many investors wanted to know the effectiveness of the policy to justify the long-term market upturn,” Daiwa Securities analyst John Choi said in a note to clients. He said the rally is more range-based as many stocks are still trading below their three- and five-year averages, and e-commerce companies are likely to be one of the main beneficiaries of further stimulus. He added that there would be one.
