SHANGHAI, Sept 21 (Reuters) - Hong Kong stocks rose on Wednesday as Asian markets were cheered by the Bank of Japan’s decision to overhaul its policy framework, with investors’ focus now shifting to the U.S. Federal Reserve’s meeting later in the global day.
The market has also been bolstered by strong Chinese money inflows.
The Hang Seng index rose 0.6 percent to 23,669.90 points, while the China Enterprises Index gained 1.0 percent to 9,849.06.
“There’s not much volatility in the China market so investors who have lost their sense of direction are looking elsewhere for investment opportunities,” said Linus Yip, strategist at First Shanghai Securities Ltd.
On Wednesday, Chinese investors bought 3.8 billion yuan ($569.60 million) of Hong Kong stocks via the Shanghai-Hong Kong Connect scheme, sustaining the pace of inflows over the past month.
The Bank of Japan overhauled its monetary policy framework earlier int he day, switching to targetting interest rates after more than three years of massive money printing and bond buying did little to jolt the economy out of a decades-long funk.
Markets are now watching out for the U.S. Federal Reserve policy decision and clues on its rate outlook.
Both hawkish and dovish comments from Fed officials recently have stoked volatility in financial markets, although consensus is now centred on a U.S. rate hike in December.
All main sectors rose on Wednesday, with energy shares leading the gains. ($1 = 6.6714 Chinese yuan renminbi) (Reporting by Samuel Shen and John Ruwitch; Editing by Kim Coghill)