Hong Kong stocks hit 1-month high as US shutdown nears end
A reopening of the federal government will help investors regain access to crucial economic data and offer clues on monetary policy
The Hang Seng Index closed 0.2 per cent higher at 26,696.41, a level last seen on October 9. The Hang Seng Tech Index also added 0.2 per cent. On the mainland, the CSI 300 Index dropped 0.9 per cent and the Shanghai Composite Index retreated 0.4 per cent.
Sinopharm Group rallied 4 per cent to HK$20.88 and HSBC Holdings added 1.7 per cent to HK$112.40. Chow Tai Fook Jewellery Group gained 2 per cent to HK$14.67 on a rebound in gold prices. Technology stocks tempered the gains. Alibaba Group Holding sank 1.8 per cent to HK$160.40 and Meituan lost 1.3 per cent to HK$102.
The US Senate pressed ahead with a plan to end the government impasse and President Donald Trump expressed support for the bipartisan deal, a key development that paves the way for the federal government to reopen soon. The progress will restore supply of official data from inflation to employment and help investors regain insights into the strength of the economy and clues on monetary policies.
Private reports over the past few weeks have given conflicting pictures about the jobs market, jolting equities that have already been whipsawed by sell-offs in technology stocks.