Chinese stocks staged a sharp rebound on Friday as investor concerns over further US interest rate hike eased after the Federal Reserve signaled it was close to the end of its tightening cycle.
(Bloomberg) — Chinese stocks staged a sharp rebound on Friday as investor concerns over further US interest rate hike eased after the Federal Reserve signaled it was close to the end of its tightening cycle.
The Hang Seng China Enterprises Index, which entered bear market this week, rose as much as 4.1%, led by property and technology companies. The Hang Seng Tech Index, whose members are mostly growth names that usually benefit from a lower US rate, added as much as 4.8%.
The recent selloff in the nation’s shares also sent key stock gauges near oversold levels, which may signal that a potential bounce is in sight.
“The Fed’s potential pause in rate hikes at the June meeting helped boosted sentiment for tech shares in Hong Kong today and released some pressure from yuan depreciation,” said Steven Leung, executive director at UOB Kay Hian Hong Kong Ltd. “The Hang Seng Index, looking at RSI, is also at a very oversold level that is even below the end of February.”
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