Hong Kong stocks extended a rebound on Tuesday as more Federal Reserve officials backed an interest-rate cut next month, restoring risk appetite that had been eroded by frothy equity valuations and tighter monetary policies.

The Hang Seng Index rose 0.7%, extending a 2% gain on Monday. The Hang Seng Tech Index gained 1.2%.

Xiaomi, the maker of smartphones and electric vehicles, rallied 4.4% to HK$40.34 after founder Lei Jun committed at least HK$100 million (US$13 million) to boosting his stake in the company. Alibaba gained 2.1% to HK$157.80 before its quarterly result later on Tuesday. Affiliate Alibaba Health Information Technology advanced 4.4% to HK$5.98. Search-engine operator Baidu jumped 4.6% to HK$116.90, rising for a second day after a rating upgrade by JPMorgan Chase.

In terms of other star stocks, Bilibili rose 5%; Kuaishou and NIO rose 3%; Laopu Gold rose 2%; BYD and Li Auto rose nearly 1%.

Federal Reserve governor Christopher Waller said on Monday that a reduction in borrowing costs was still on the cards in December. New York Fed president John Williams made a similar comment, saying that he saw the possibility of a near-term cut. San Francisco Fed president Mary Daly also backed a cut, she said in an interview on Monday.

The Fed will convene on December 11 for a rate decision, even as the world’s biggest central bank had no access to crucial US data on inflation and the jobs market because of delays caused by the unprecedented 43-day government shutdown.