FirstFT: Hong Kong stocks climb after call for ‘forceful’ state support to halt market rout

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Good morning. Shares in Hong Kong posted their greatest each day features this 12 months following a name from China’s premier for “forceful” state help to halt a punishing market rout.

The town’s benchmark Hold Seng index rose 2.6 per cent yesterday after Premier Li Qiang known as for “extra forceful and efficient measures to stabilise the market and enhance confidence”.

The Hold Seng fell nearly 14 per cent final 12 months, making it one of many worst-performing benchmark indices throughout all giant markets. Shares in Shanghai, Shenzhen and Hong Kong proceed to lose floor on account of slowing financial development in China, an unresolved monetary disaster within the property sector and worsening tensions between Beijing and Washington.

Merchants stated yesterday’s features would show fleeting if state help didn’t materialise. “This could possibly be the boy that cried wolf,” stated the buying and selling desk head at one funding financial institution in Hong Kong. Right here’s extra on Beijing’s efforts to halt the sell-off. 

And right here’s what else I’m protecting tabs on as we speak:

New Hampshire main: Voting is below approach within the US state. At the moment could possibly be a make-or-break second for Nikki Haley’s effort to defeat Donald Trump within the race for the Republican presidential nomination. Comply with our dwell protection.

Financial knowledge: The S&P World/HCOB flash January buying managers’ index for the manufacturing and companies sectors is due for the EU, France, Germany, Japan, UK and US.

Be part of the FT’s Martin Wolf and Alec Russell together with skilled friends as we speak at 21:00 HKT as they focus on the problem posed by migration to liberal democracies. Subscribers can register at no cost right here.

5 extra prime tales

1. Turkey’s parliament has voted in favour of Sweden becoming a member of Nato, marking a big step ahead within the Scandinavian nation’s long-fought bid to enter the western army alliance. Sweden dropped its centuries-old coverage of army non-alignment after Russia’s 2022 full-scale invasion of Ukraine. Right here’s what’s subsequent for Stockholm’s Nato bid.

2. Israeli forces suffered their deadliest day because the begin of the bottom struggle in Gaza. Twenty-four troopers have been killed within the preventing with Hamas on Monday, 21 of them in a single incident in central Gaza. Paying tribute to the useless troopers, Israeli Prime Minister Benjamin Netanyahu resisted worldwide requires a ceasefire deal, vowing to “not cease preventing till whole victory”.

3. Russia’s struggle in Ukraine has was “a battle of ammunition”, Nato’s head has warned. Yesterday’s feedback from Nato secretary-general Jens Stoltenberg got here because the alliance signed a €1.1bn deal to obtain extra ammunition its members can ship to Ukraine or use to replenish their very own shares. Confronted with dwindling provides, Ukrainian troopers on the entrance line have informed the FT in latest days that they’re compelled to ration munitions.

4. The chief govt of United Airways, certainly one of Boeing’s greatest clients, warned he’s rethinking an enormous order for brand spanking new plane from the beleaguered aircraft producer. United has been compelled to floor 79 of its Boeing 737 Max 9 planes as a federal investigation seems to be into a harmful mid-flight fuselage breach of an Alaska Airways plane earlier this month.

5. Different drugmakers might nonetheless “win” the race within the quickly rising weight problems market dominated by Novo Nordisk and Eli Lilly, in response to the chief govt of biotech firm Zealand Pharma. The declare by Adam Steensberg follows a 100 per cent surge within the firm’s share worth prior to now 12 months as buyers purchased the inventory because of the potential of its anti-obesity medication. Right here’s why Steensberg believes it’s not too late for others to develop weight-loss merchandise.

Information in-depth

China’s feared spy company is stepping out of the shadows. A publicity marketing campaign launched by the Ministry of State Security measures slick advertisements, an official WeChat account and even a comic book collection, whereas the company’s management has additionally been accorded greater political standing. Analysts say the rising public and political position of the MSS is a part of Xi Jinping’s rising concentrate on safety, as China’s chief tightens his maintain on the nation.

We’re additionally studying . . . 

Citi’s wager on China: A lot has modified because the lender first utilized for an funding banking licence in China.

Audio deepfakes: A faked Joe Biden robocall underlines the prevalence of low cost AI instruments getting used to create clips geared toward swaying voters.

Populism: Donald Trump, Narendra Modi and Benjamin Netanyahu have all presided over development. Janan Ganesh asks, why hasn’t populism finished extra financial hurt?

Chart of the day

Bitcoin has misplaced 15 per cent of its worth over the previous two weeks, as some buyers use the much-hyped launch of bitcoin change traded funds earlier this month to take earnings and exit their holdings of the risky cryptocurrency.

Take a break from the information

Oscar nominations have been introduced yesterday after a 12 months in movie with a putting variety of critically praised and commercially fashionable hits (keep in mind “Barbenheimer”?). Listed here are all of the snubs and surprises.

Extra contributions from Tee Zhuo and Gordon Smith