Hong Kong stocks soared 1283.95 points, or 10.11 percent to finish Thursday's morning session at 13986.02, after a half-point interest rate cut by the U.S. Federal Reserve (Fed) overnight and a 0.27 percent benchmark interest rate cut by China's central Bank Wednesday.
Hong Kong's benchmark Hang Seng Index opened at 13,280.44 on Thursday, up 578.37 points, or 4.55 percent, tracking gains in regional markets' early trade. The index moved above 13,000 points level during the morning session, soaring to 14,023.58 before midday.
The Fed cut a key interest rate by half a percentage point to 1. 0 percent to prevent the economy from slipping into deep recession. China's central bank, the People's Bank of China (PBOC),also announced on Wednesday it would cut benchmark interest rates by 0. 27 percent to spur economic growth as of Oct. 30.
The Hong Kong Monetary Authority (HKMA) announced Thursday that the base rate is adjusted downward to an historic low of 1.5 percent with immediate effect, following the U.S. Federal Reserve's move.
Joseph Yam, the Chief Executive of the HKMA, said he hoped local banks would now reduce lending rates to help ease the credit squeeze, adding that the HKMA would inject more liquidity into the markets if necessary.
But Yam said the impact of the cut would take some time to filter into different sectors of the economy to benefit businesses and individual investors.
South Korean benchmark Korea Composite Stock Price Index rose 10 percent Thursday morning while Tokyo stocks finished the morning session over 4 percent higher. Singapore stocks also advanced over 7 percent at midday.
Source:Xinhua
|
Comment
Tell A Friend
Print Format
Save Article