Shares in HSBC rose to their highest in two months in Hong Kong on Monday as investors appeared upbeat on the impact of the expected interest rate hike by the US Federal Reserve this week.

HSBC’s stock jumped as much as 2.7 per cent in early trading in Hong Kong, its biggest intraday gain in two months, to hit HK$78.90, the highest since October 11.

“Higher rates will help to improve [HSBC’s] interest spread,” said Ben Kwong, Hong Kong head of research for KGI Securities.

On Wednesday, outgoing Fed chair Janet Yellen is expected to lift the central bank’s target range to 1.25-1.5 per cent.

Mr Kwong added that HSBC has “lagged behind in the recent market rally” and Chinese insurer Ping An’s move to increase its stake to be the second-largest shareholder in the bank has also “fuelled speculative interest”.

The broader financials segment in Hong Kong added 0.4 per cent as the Hang Seng index lifted 0.5 per cent.

Shares in HSBC have now gained more than 25 per cent in 2017.

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