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Monday, August 1, 2016, 17:41

Shares rise on reduced chance for a US rate hike soon

By Reuters

Hong Kong stocks followed Asian markets higher, after disappointing US economic growth data reduced expectations of imminent rate hikes by the US Federal Reserve.

The Hang Seng index rose 1.1 percent, to 22,129.14, while the China Enterprises Index gained 1.9 percent, to 9,129.20 points.

Gains in Hong Kong were in line with MSCI's broadest index of Asia-Pacific shares outside Japan, which rose over 1 percent, hitting its highest level in about a year.

US gross domestic product increased at a 1.2 percent annual rate in the April-June period, less than a half of a 2.6 percent growth rate economists had predicted. That reduced expectations that the Fed will raise interest rates in the next few months.

Most sectors rose, with resources and telecom shares leading the gains.

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