HK Stock Market Move | Hong Kong banking stocks rose across the board. Democrats sweep the U.S. Congress. Easing fiscal concerns and cooling U.S. Treasury yields boost market sentiment.

Hong Kong banking stocks rose across the board. As of press time, HSBC HOLDINGS (00005) was up 4.12% at HK$141.2; STANCHART (02888) was up 3.46% at HK$227; BANK OF E ASIA (00023) was up 3.09% at HK$17.68; DAHSING BANKING (02356) was up 2.69% at HK$13.72. On the news front, Democrats sweeping the U.S. Congress weakened market bets on further expansion of U.S. military spending, but boosted European bank stocks' expectations for an improved financing environment and credit outlook. As midterm election results were gradually announced, U.S. Treasury yields fell, and UK, French and Italian government bond yields also declined. The STOXX Europe 600 Banks index rose as much as 4.5%, on track for its best single-day gain since May. On the earnings front, some banks already have the operating foundation to support a valuation recovery. HSBC's third-quarter pre-tax profit rose 10% year on year at constant currency and excluding significant items; Santander's Common Equity Tier 1 (CET1) capital ratio stood at 12.7% at the end of September, above the 9.86% minimum requirement. Profit growth and capital buffers provide support for banks to absorb potential losses and maintain credit supply.