Asian equities rose to a fresh seven-month high on Thursday, with Hong Kong shares playing catch-up to other markets’ gains as trade resumed after its three-day Lunar New Holiday.
MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) climbed 0.56% to 555.81. Hong Kong’s Hang Seng index (.HSI) was 1.6% higher.
Japan’s Nikkei (.N225) was, however, 0.25% lower.
Trading was thin on Thursday with Australia closed for a holiday and certain parts of Asia, including China, still away for the Lunar New Year.
Traders betting that the U.S. Federal will soon tone down its aggressive rate hike policy got a lift after the Bank of Canada on Wednesday became the first major central bank to say it would likely hold off on further increases for now.
After a series of super-sized rate hikes last year, the U.S. central bank is now largely expected to raise rates by a smaller 25 basis points next week on signs that inflation is cooling.
“The US GDP release today will be of key interest to gauge whether the market expectations shifting in favour of a soft landing rather than a recession can continue to hold,” Saxo strategists said in a note to clients.
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