Hang Seng jumps to finish at four-year peak

The Hang Seng climbed 304 points or 1.2% to close at 25,938 on Tuesday, extending gains for the third session and hitting a four-year high due to broad-based sector strength.

Sentiment was upbeat amid bets of a U.S. rate cut as early as next week after weak U.S. jobs data, alongside Wall Street’s gains that pushed the Nasdaq to a record close Monday.

Property stocks led the rally, up 1.8% after Shenzhen eased home purchase curbs. Also boosting sentiment were reports that China renewed bilateral currency swap agreements with several European central banks, including the ECB and SNB. Still, gains were capped by caution ahead of August CPI and PPI data due Wednesday in China, with deflation risks lingering after flat consumer prices in July and a 34th drop in producer prices.

Country Garden Holdings surged 23.5% on its inclusion in the stock connect program. Other solid performers included Alibaba Health (9.7%), JD Health Intl. (6.7%), Kuaishou Tech (3.7%), and China Overseas Land (3.3%).