Hong Kong Stocks Rise to Four-Year Highs on US Rate Cut Expectations Amid China Tech Slump

Hong Kong stocks surged to their highest levels in four years, driven by investor optimism about an imminent U.S. Federal Reserve rate cut following a disappointing U.S. jobs report. The Hang Seng Index rose by over 1%, reaching levels not seen since October 2021, supported by expectations of global monetary easing and potential policy relaxation in China. Conversely, China's mainland markets saw a pause in their rally, with the CSI300 and Shanghai Composite Index declining due to a significant drop in technology shares, particularly a nearly 10% fall in Semiconductor Manufacturing International Corp after an acquisition announcement. Meanwhile, shares in Chinese gold miners and Hong Kong property stocks gained, buoyed by rising gold prices and confidence in global markets. Asian markets broadly advanced on the same rate cut optimism, with Tokyo hitting record highs despite political changes, while investor caution remains due to persistent inflation and concerns about the sufficiency of monetary easing. Overall, the market movements reflect a balancing act between hopes for easier monetary policy and uncertainties about economic fundamentals.