By Yifan Wang

BYD Co. shares jumped in Hong Kong morning trade after the Chinese electric-car maker posted better-than-expected September sales and hopes of more measured monetary tightening fueled risk-on sentiment.

The stock rose as much as 9.8% within an hour of trading and was last up 9.1% at HK$209.40 (US$26.68) a share. That marks its largest one-day percentage gain since May.

BYD's rally comes after its new-energy vehicle sales doubled in September, beating market expectations.

"The sales strength was broad-based across its model line-up," while new models also generated "decent orders" in international markets, Bocom International analysts said in a note. They expect the company's competitive new product cycle to help expand sales overseas and drive domestic sales volume in the long run.

Risk-on sentiment in global equities markets is giving BYD shares an extra boost.

U.S. stocks have rallied for two straight days, putting the Dow Jones Industrial Average and the S&P 500 at multi-month highs.

The upturn comes amid hopes that central banks might ease up on monetary-policy tightening in response to signs of emerging financial stress. New data from the U.S. Labor Department has shown fewer job openings and higher layoffs in August, signs that the labor market is starting to cool. Such a slowdown could help reduce inflation and ease pressure on the Federal Reserve to keep raising rates.

Meanwhile, the Reserve Bank of Australia on Tuesday slowed its pace of tightening, raising rates by less than expected, but it remains the outlier for now.


Write to Yifan Wang at yifan.wang@wsj.com


(END) Dow Jones Newswires

10-04-22 2243ET