HK stocks soar to its highest in almost three weeks

Hong Kong stocks surged to a nearly three-week high on Wednesday as investors eagerly await potential interest rate cuts amid escalated tensions between Trump’s administration and Federal Reserve chairman Jerome Powell.

The benchmark Hang Seng Index gained 2.6 percent or 643 points, closing at 25,613 – its second highest year-to-date.

The main board recorded a HK$284 billion turnover on Wednesday.

The tech gauge rose 3.5 percent to 5,630 points.

Alibaba (9988) jumped 6.1 percent. Tencent (0700) marched 4.7 percent ahead of the release of its interim results.

In mainland China, the Shanghai Composite Index gained 0.5 percent to close with 3,683 points while the Shenzhen Component Index rose 1.8 percent to 11,551.

White House spokeswoman Karoline Leavitt said US President Donald Trump is considering a lawsuit against Powell related to his management of renovations at the Fed's Washington headquarters.

The potential move, suggested earlier in a presidential social media post, escalates Trump's continuing pressure on the central bank leader to cut interest rates.

Moreover, US Treasury Secretary Scott Bessent said the Federal Reserve should cut benchmark rates by 50 basis points at its September meeting, following its inaction at the July 30 policy meeting.

STAFF REPORTER and REUTERS