Rate Cuts Lift HSI, Mainland Markets Fall

Hong Kong stocks ended with healthy gains on Thursday after the Federal Reserve cut interest rates for a third time this year, and before new government figures were released showing the economy has slid into a technical recession with a 3.2-percent contraction in the third quarter over the previous three-month period.

The Hang Seng Index added 0.9 percent, to 26,906.

On the mainland, the Shanghai Composite Index slipped 0.4 percent, to 2,929 while the Shenzhen Composite Index dropped 0.8 percent, to 1,616 as data showed Chinese factory activity has slowed further in October.

Other Asian markets were mixed as the Fed indicated it is unlikely to make any more reductions.

Tokyo finished 0.4 percent higher with little reaction to the Bank of Japan keeping monetary policy unchanged but hinting at possible future rate cuts.

Singapore was up 0.7 percent, while Mumbai and Bangkok were also on the rise. Seoul added 0.2 percent, but market heavyweight Samsung was flat after it reported third-quarter net profit had more than halved.

But there were losses in Sydney, Wellington and Jakarta. (AFP)