Hong Kong Tech Stocks Rebound as Fed Keeps Easy Monetary Policy in Place

   By Yifan Wang 
 

Shares of Hong Kong-listed Chinese tech giants are rebounding sharply in morning trade on Thursday, following the strength in the U.S. market overnight after the Federal Reserve kept its easy-money policies in place.

E-commerce giant Alibaba Group Holding Ltd. has soared as much as 7.2%, while delivery firm Meituan jumped up to 6.0%. Social media operator and gaming developer Tencent Holdings Ltd. has tracked up as much as 3.8%.

The gains follow a broad downturn in the Asian market's tech sector the past several weeks, as rising yields on U.S. Treasury bonds raised borrowing costs for companies and damped investor sentiment.

Fed officials voted unanimously to maintain overnight interest rates near zero, where they have been set for the past year, and most of them expect to maintain ultralow interest rates through 2023.

U.S. stocks reacted positively to the central bank's move to sustain its loose monetary policy. In particular, the tech-heavy Nasdaq Composite advanced 0.4%, with tech majors Tesla Inc. and Amazon.com Inc. each up 3.7% and 1.4%.

Write to Yifan Wang at [e-mail]

(END) Dow Jones Newswires

March 17, 2021 23:55 ET (03:55 GMT)

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