Hong Kong stocks rose for a second day as China’s central bank added funds to the financial system for the first time in two weeks, helping alleviate a cash squeeze.
The Hang Seng Index (HSI) added 0.4 percent to 22,890.97 as of 9:31 a.m. in Hong Kong, putting the gauge on course for a 0.2 percent advance in October. The Hang Seng China Enterprises Index (HSCEI) of mainland companies listed in the city jumped 0.9 percent to 10,351.87.
The People’s Bank of China will conduct 13 billion yuan ($2.1 billion) of seven-day reverse repurchase agreements today, according to a trader at a primary dealer required to bid at the auctions. Money-market rates in the world’s second-biggest economy surged through Oct. 25 as the central bank refrained from from injecting funds into the banking system.
The Hang Seng Index traded at 10.9 times estimated earnings yesterday, compared with 15.9 for the Standard & Poor’s 500 Index.
Futures on the S&P 500 lost 0.1 percent today before the Federal Open Market Committee begins a two-day meeting.
The Fed is likely to delay reducing its $85 billion in monthly bond purchases until March, according to a Bloomberg News survey of economists conducted Oct. 17-18. The FOMC surprised investors last month by maintaining its unprecedented level of stimulus even as a separate Bloomberg survey indicated the central bank was likely to taper.
To contact the reporter on this story: Jonathan Burgos in Singapore at firstname.lastname@example.org
To contact the editor responsible for this story: Sarah McDonald at email@example.com