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HONG KONG: Hong Kong stocks soared more than three percent in the morning session Friday, extending a rally fuelled by the Federal Reserve’s indication that it will cut interest rates next year.

The Hang Seng Index jumped 3.40 percent, or 554.36 points, to 16,956.55.

The Shanghai Composite Index added 0.51 percent, or 15.20 points, to 2,974.18, and the Shenzhen Composite Index on China’s second exchange climbed 0.46 percent, or 8.46 points, to 1,843.73.

Markets worldwide have been boosted by the dovish pivot from the Fed on Wednesday, which comes as data suggests more than a year of tightening had put the bank on course to taming inflation.

Hong Kong stocks edge down at open

Investors were also cheered by news that the People’s Bank of China had pumped more cash into the financial system than expected.

However, data showing Chinese retail sales came in below forecasts reminded markets that the world’s number two economy continues to struggle a year after the removal of draconian Covid containment measures.

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