Alibaba Group Holding (NYSE:BABA) – Why Alibaba, Nio and Other Stocks Are Soaring in Hong Kong Today
Hong Kong shares opened in the green on Friday, taking inspiration from Wall Street where major indices gained after clarity over the United States Federal Reservestrategy path. The slower-than-expected rise in consumer price inflation in China also boosted sentiment.
The reference Hang Seng Index increased by more than 2% during the morning session. Shares of Alibaba, Nio and XPeng jumped more than 2%.
|Ali Baba Holding Group ltd. BABA||2.52%|
|JD.com Inc. J.D.||2.89%|
|Baidu Inc. BIDU||2.87%|
|Tencent Holdings ltd. TCEHY||1.39%|
|Nio Inc. NIO||5.07%|
|XPfra Inc XPEV||3.45%|
|Li-Auto Inc. LI||1.77%|
Fed Chairman Jerome Powell said the central bank remained firmly committed to controlling inflation, adding that there was hope it could be done without the “very high social costs”. On Thursday, the European Central Bank raised its key rate by an unprecedented 75 basis points.
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Macro News: The Chinese city of Chengdu on Thursday extended a lockdown for the majority of its more than 21 million residents to stem an outbreak of COVID-19, while millions of people in other parts of the country were told to avoid traveling during the upcoming holidays, reported Reuters.
Consumer prices in China rose at a slower than expected pace in August following heatwaves and COVID-19 surges, while producer inflation hit its lowest level since February 2021 , reported Reuters, citing official data. The CPI rose 2.5% year-on-year, compared to growth of 2.7% in July.
Company News: Chinese developer lenders Evergrande Group ENGRNF appointed a receiver this week to seize its Hong Kong headquarters, reported Reuters, citing sources. This comes at a time when the world’s most indebted developer is struggling to emerge from its debt crisis.
Main winners and losers: Country Garden Services Holdings Company Ltd and China Land Resources Ltd were the biggest winners in the Hang Seng, rising over 8% and 4% respectively at the opening of trade. CLP Holdings Ltd and CK Infrastructure Holdings Ltd were the only two losers among the top 30 voters.
World News: US futures were trading in the green in the Asian session on Friday morning. Dow Jones futures rose 0.21% while Nasdaq futures gained 0.46%. S&P 500 futures rose 0.28%.
Elsewhere in Asia, Australia’s ASX 200 rose 0.44%. Japan’s Nikkei 225 rose 0.49%, while China’s Shanghai Composite Index rose 0.26%. The South Korean Kospi rose 0.33%.