Consumer prices on the mainland slipped 0.4 per cent in August from a year earlier, compared with estimates of a 0.2 per cent decrease.

A resumption of gains in mainland stocks instils confidence in Hong Kong equities.

The probability of a 25-basis-point reduction by the Fed this month jumps to 89.4 per cent, according to the CME Group.

China's August consumer price index fell 0.4% year over year, missing expectations of a 0.2% drop by economists polled by Reuters.

Consumer prices on the mainland slipped 0.4 per cent in August from a year earlier, compared with estimates of a 0.2 per cent decrease.

With US inflation data for August coming in line with expectations, a quarter-point rate cut by the Fed is almost certain.