Hong Kong stocks jumped on Wednesday, tracking overnight gains in US equities, on speculation the Federal Reserve will resume cutting interest rates sooner this year amid a slump in global oil prices.

The Hang Seng Index rose 1.23%, while the Hang Seng Tech Index rose 1.15%.

In terms of star stocks, Guotai Junan International rose 198%; New Oriental rose 9%; SMIC rose 6%; CATL rose 5%; JD.com and Alibaba rose 3%; NIO and Baidu rose 2%; Meituan rose 1%; Tencent rose 0.6%.

Stocks in Hong Kong and around the region strengthened after the Nasdaq 100 surpassed its previous all-time high in February. Fed chair Jerome Powell struck a balanced tone on policy outlook in his testimony to US lawmakers, and traders stepped up bets on a rate cut in September, which will weaken the US dollar and spur inflows to Asian markets. Oil prices tumbled after Israel and Iran agreed to a ceasefire.

Investment banks including KGI said the Hang Seng Index could extend its gain into the second half, aided by foreign capital inflows. KGI expects the city’s benchmark index to reach 25,500 by the end of the year, implying a 4.7% upside.