Nio Surges 15%, Alibaba Up Nearly 1%: What's Pushing Hong Kong Stocks Higher Today

Hong Kong shares opened in the green on Wednesday, with the benchmark Hang Seng gaining 2.5%, as investors began considering the possibility of slowing aggression by the Federal Reserve when it announces its monetary policy next week. 

The Hang Seng traded above the 15,500 mark after having dipped below the 15,000 level on Tuesday for the first time since April 2009.

Shares of Nio and Xpeng rose over 15% and 12%, respectively, while Meituan and Li Auto shares gained over 7%.

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Macro News: China's cabinet released rules on Tuesday to promote private businesses, which include incentives for financial institutions to lend to them, reported Reuters.

China’s broad fiscal deficit reached an all-time high in the first nine months of 2022 as COVID-19 outbreaks and a housing market decline continue to weigh on government income, reported Bloomberg.

The highly contagious XBB may become the next dominant strain of COVID-19 in Hong Kong, but the level of hybrid immunity among people should keep away severe illnesses, health experts said according to the South China Morning Post.

Company News: Huawei-backed brand AITO has begun offering discounts to car buyers, becoming the first local brand to do so following Tesla's price cut, reported CnEVPost.

Nio has signed a contract with the Jiangqiao town government in Shanghai to build its new international headquarters building there, reported CnEVPost.

Top Gainers and Losers: Alibaba Health Information Technology Ltd and Meituan are the top gainers among Hang Seng constituents today, having risen over 10% and 8%, respectively. Longfor Group Holdings Limited and CITIC Limited are the top losers, having shed over 1.5% each.

Global News: U.S. futures traded in the red on Wednesday morning Asia session. The Dow Jones futures were down 0.22%, while the Nasdaq futures lost 1.91%. The S&P 500 futures were trading lower at 0.9%.

Elsewhere in Asia Pacific, Australia’s ASX 200 was up 0.18%. Japan’s Nikkei 225 gained 1.71%, while China’s Shanghai Composite index rose 1.41%. South Korea’s Kospi gained 0.93%.

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