'Market sentiment weak despite rates hopes'
Local stocks on Thursday gave up some of their early advances but still finished more than 1 percent higher, on hopes of lower interest rates in the US next year. The Hang Seng Index climbed about 2 percent at one stage before paring some of those gains. It ended 173 points or 1.07 percent higher at 16,402. Despite Thursday's rally, James Wong, chief executive officer at Cathaysia Securities, said even with the US Federal Reserve signalling it'll cut rates in 2024, local sentiment remained weak and will take time to improve. “Optimistic sentiment is rooted in the US equity markets, and the lacklustre sentiment is rooted in Hong Kong stock markets. "The level of the profoundness in sentiments in both regions is about the same. It’s really hard for either of the markets to turn in another direction next year," Wong said, adding the city’s financial markets may still go through a relatively long low-valuation period under a cyclical downturn. Separately, Hannah Jeong, head of Valuation & Advisory Services at property firm Colliers, said the apparent peak in US interest rates could boost property transactions next year, but it would not prevent prices from falling. “The lowering of rates will help ease certain financial pressure. But even if the interest rate comes down by 75 basis points or even 1 percentage point, the rates are still at a high level and the financial burden will persist for home buyers,” said Jeong.