Alibaba, JD.com, Tencent Stocks Jump. Thank U.S. Rate-Cut Hopes.

E-commerce giant Alibaba stock rose Wednesday. (David Becker/Getty Images)

Shares of Chinese companies rallied Wednesday as markets interpreted the latest U.S. inflation data as boosting chances for a September rate cut. Corporate earnings from China’s most valuable company Tencent lifted the mood further.

American depositary receipts of e-commerce giants Alibaba and JD.com were up 3.5% and 1.7%, respectively. Search engine operator Baidu ADR’s gained 1.9% and Temu-owner PDD Holdings climbed 2.6%. It comes after all stocks rose about 3% Tuesday.

The Hang Seng index closed up 2.6% Wednesday, as the S&P 500 and Nasdaq indexes reached record intraday highs in the previous trading session.

Tuesday’s U.S. July consumer price index rose at an annual rate of 2.7%, slightly below economists’ expectations, leading traders to bet that the Federal Reserve will cut interest rates at its next meeting in September.

The videogame developer and WeChat operator company Tencent Holdings also reported better-than-expected quarterly earnings Wednesday. The company said net profit rose 16% from a year ago, sending shares up 4.7% up in Hong Kong. The report kicks off the earnings season for Chinese big tech firms.

JD.com, a tech-focused online retailer, is scheduled to report second-quarter earnings early Thursday.

Write to Elsa Ohlen at elsa.ohlen@barrons.com