HONG KONG: Hong Kong stocks surged in a furious rally Wednesday ahead of the Fed decision on whether to raise U.S. interest rates.
The Hang Seng Index jumped 2.2% to 21,749 by midday, led by gains in oil stocks. “Markets in Asia have been following the lead from Europe and the U.S. and relishing the bounce in oil prices,” says Australian brokerage IG.
China also said it would temporarily hold off on controlling domestic gas and diesel prices, which also helped send shares of Cnooc (0883.HK), PetroChina (0857.HK) and Sinopec (0386.HK) 4%, 6% and 10% higher, respectively. The Hang Seng China Enterprises Index rose 2.75% higher on the same oil theme. Hannah Li, strategist for UOB Kay Hian, however, cautions that “the momentum in the afternoon session may not be strong enough as investors stay sideways ahead of FOMC meeting.”
