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Monday Business | BRIEFLY / MARKETS

Hong Kong Stocks Rise as Rates Fall

September 07, 1998|Bloomberg News

Hong Kong stocks rose more than 7% in early trading Monday, leading most Asian stock markets higher, as interest rates fell to a four-month low on the back of government measures aimed at curbing speculation against the territory's 15-year-old currency board system. The government stepped up its battle against speculators Saturday, unveiling a package of measures to strengthen the currency's peg to the U.S. dollar and make it less susceptible to a speculative attack. Today, the interest rate for overnight loans sank to its lowest since late April. Those measures are expected to help banking and property stocks, as lower interest rates would mean lower borrowing costs and increased margins. Analysts said stocks might also get a boost from the fall in interbank rates as investors rush to buy stocks they had borrowed to sell, betting prices would fall.

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