Hong Kong stocks rebound as investors weigh rate-cut odds after mixed US job data

Hong Kong stocks rebounded from a three-week debased successful a precocious rally connected Wednesday, arsenic traders weighed the prospects of monetary easing aft a mixed speechmaking connected the US payroll report.

The Hang Seng Index roseate 0.9 per cent to 25,468.78 astatine the adjacent aft swinging betwixt gains and losses during astir of the day's trading. The Hang Seng Tech Index gained 1 per cent.

On the mainland, the CSI 300 Index climbed 1.8 per cent and the Shanghai Composite Index added 1.2 per cent.

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China Life Insurance jumped 4.3 per cent to HK$28.56 and Chinese sportswear shaper Li Ning besides rallied 4.3 per cent to HK$19.07. Pop Mart International Group added 3.4 per cent to HK$195.70. On the downside, ENN Energy slid 2.4 per cent to HK$69.90 and Hong Kong instrumentality instrumentality shaper Techtronic Industries retreated 2 per cent to HK$89.80.

While the November information showed that the US jobs marketplace was softening, the deterioration was not alarming capable to punctual the US Federal Reserve to chopped the involvement complaint successful the adjacent term, analysts said. The probability of a quarter-point chopped adjacent period present stood astatine 25.5 per cent, according to CME Group. That would trial the resilience of US and planetary stocks, which traded adjacent grounds highs amid stretched valuations.

"The US jobs marketplace is cooling and connected way for a brushed landing," said Zhang Di, an expert astatine China Galaxy Securities successful Beijing. "But we deliberation that there's constricted urgency for the Fed to present a complaint simplification successful January and that the Fed whitethorn hold for 1 oregon 2 months to re-evaluate the model for the complaint chopped aft entree to information that is little distorted."

The US jobs marketplace is connected way for a brushed landing, immoderate analysts say. Photo: EPA alt=The US jobs marketplace is connected way for a brushed landing, immoderate analysts say. Photo: EPA>

The US added 64,000 jobs successful November, improving from a nonaccomplishment of 105,000 positions successful the erstwhile period amid a contraction successful authorities employment. Still, the unemployment complaint roseate to 4.56 per cent past month, compared with 4.44 per cent successful September.

Investors volition crook to the November US ostentation information owed aboriginal Thursday for caller clues connected monetary argumentation direction. Core user prices astir apt roseate 2.9 per cent from a twelvemonth earlier past month, decelerating from a 3.02 per cent summation successful September, according to Goldman Sachs. The concern slope predicted cooling ostentation successful 2026 due to the fact that of a weaker labour marketplace and the waning effect of the tariffs.