The Hong Kong stock market has finished higher now in seven straight sessions, surging more than 1,000 points or 5 percent along the way. The Hang Seng Index finished just below the 21,100-point plateau, but now investors are bracing for consolidation when the market kicks off trade on Thursday.
The global forecast for the Asian markets is mildly pessimistic, with commodities, technology stocks and properties likely to see selling pressure. Weaker than expected economic data out of the U.S. adds to the negative outlook. The European and U.S. markets finished lower, and the Asian markets are expected to follow suit.
The Hang Seng finished modestly higher again on Wednesday, thanks to major upside from the financial and airline sectors - although property stocks ended lower.
For the day, the index collected 117.79 points or 0.6 percent to finish at 21,091.18 after trading between 20,902.16 and 21,199.55 on turnover of 62.48 billion Hong Kong dollars.
Among the gainers, HSBC added 2.6 percent, while Hang Seng Bank gained 1.0 percent, Agricultural Bank of China jumped 1.99 percent, China Construction Bank was up 0.76 percent, China Eastern Airlines surged 5.03 percent, Cathay Pacific Airways collected 2.83 percent and China Southern Airlines climbed 2.54 percent.
Finishing lower, New World Development shed 1.3 percent, while Hang Lung Properties lost 3.1 percent, Midland Holding plunged 3.89 percent, Hang Lung Group declined 0.98 percent and China Resources Land eased 0.24 percent.
The lead from Wall Street calls for consolidation as stocks posted notable losses on Wednesday, with the Federal Reserve's Beige Book showing some signs of a stalling economic recovery and the Commerce Department reporting an unexpected drop in durable goods orders. The markets fell on the news, which continued to call into question the veracity of an economic rebound in the absence of government stimulus.
In the afternoon, the Fed released its Beige Book report, showing that the economy continued to expand over the past month but indicating that the economic recovery had trimmed its momentum. Notably, the report revealed that the Cleveland and Kansas City Fed districts reported a standstill in economic activity, while the Atlanta and Chicago districts revealed a slowdown in the pace of growth. While most other Fed districts indicated improvements, advances were modest at best. Overall, the report was less upbeat than June's, which detailed a moderate economic rebound.
Before the start of trading, the Commerce Department said that orders for durable goods fell by 1.0 percent in June following a revised 0.8 percent decrease in May. The decline was unexpected, as economists had forecast a 1.0 percent increase in orders for the month. Excluding a 2.4 percent decrease in orders for transportation equipment, durable goods orders fell by a more modest 0.6 percent in June compared to a 1.2 percent increase in the previous month. Economists had expected ex-transportation orders to increase by 0.6 percent.
In earnings news, Boeing Co. (BA) reported second-quarter earnings that edged out estimates, while revenues fell well short of analyst forecasts. Sprint Nextel (S) reported a wider second-quarter net loss compared to last year on revenues that were just short of analyst expectations.
The major averages moved well off their worst levels of the day going into the close but remained stuck in the red. The Dow fell by 39.81 points or 0.4 percent to 10,497.88, the NASDAQ declined by 23.69 points or 1 percent to 2,264.56 and the S&P 500 slid by 7.71 points or 0.7 percent to 1,106.13.
In economic news, Chinese industrial profits increased 71.8 percent during January to June, the National Bureau of Statistics showed Wednesday. The latest growth rate was 11.2 percentage points lower than in the first five months. According to NBS, combined income grew 36.5 percent in the first half of 2010, down from 38.9 percent recorded during January to May. Data covered industries in 24 of the nation's 31 provinces.
Also, the International Monetary Fund said on Tuesday that the Chinese economy is likely to grow strongly, although the inflation outlook appears benign, adding that its directors were split on whether the country's currency is undervalued.
In a statement released after concluding the 2010 Article IV consultation with China, the IMF said the Chinese authorities' quick, determined and effective policy response has helped mitigate the impact of global financial crisis on the economy and ensured that the country has led the global recovery.
The Washington-based lender forecast the Chinese economy to expand 10.5 percent this year following 9.1 percent growth last year.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.