Hong Kong, China stocks to end year nearly 20pc higher

Staff reporter and Reuters

Stocks in Hong Kong and mainland China are ending 2024 on a high note, having risen by as much as 19 and 18 percent respectively year-to-date, ahead of the last trading day of the year.

And the S&P 500 in the United States is set for a 25 percent jump.

Hong Kong's benchmark Hang Seng Index edged down 0.24 percent to 20,041 points yesterday, weakening its year-to-date growth to 19.38 percent.

The mainland's CSI 300 Index, however, inched up by 0.24 percent to 3,999 points, leading to an increase of 18.09 percent this year. Almost the entire gain came in just two weeks in September after Beijing promised more stimulus.

The onshore yuan closed flat at 7.2992 per US dollar yesterday but weakened by 3.26 percent on the year.

Shares in other markets also drifted lower yesterday following thin trading volumes ahead of Wednesday's New Year holiday. Stock markets in Germany, Italy and Switzerland are shut today as well, while those in the United Kingdom and France have a half-day trading session.

Japan's Nikkei share average retreated on its last trading day in 2024, down from Friday's five-month high, as investors locked in profits on the index that rose nearly 20 percent for the year.

South Korea's main index has suffered from the country's storm of political uncertainty in recent weeks, and is saddled with losses of 9 percent for the year. It was last down 0.2 percent.

Shares of South Korean budget carrier Jeju Air hit their lowest level on record yesterday, in the wake of Sunday's plane crash that killed 179 people.

European Stoxx 600 is set to end 2024 with a 5.9 percent gain, though the pan-European index dropped 0.3 percent yesterday by 9.47 GMT.

Yields on 10-year Treasuries are near eight-month highs at 4.597 percent and ending the year around 75 basis points above where they started, even though the Fed delivered 100 basis points of cuts to cash rates.

"The continued rise in bond yields, driven by the reassessment of less restrictive monetary policy expectations, creates some concern," said Quasar Elizundia, a research strategist at broker Pepperstone.

"The possibility that the Fed may keep restrictive monetary policy for longer than expected could temper corporate earnings growth expectations for 2025, which could in turn influence investment decisions."

Meanwhile, oil has had a tougher year as concerns about demand from China and a likely influx of supply from the US in 2025 kept a lid on prices and forced OPEC+ to repeatedly extend a deal to limit supplies. Brent fell 19 cents to US$73.98 (HK$577.04) a barrel yesterday.