The Hong Kong stock market put on just 2 points on Thursday - but that was enough to extend its winning streak to eight sessions, collecting more than 1,000 points or 5 percent in that span. The Hang Seng Index remained just below the 21,100-point plateau, and now analysts are forecasting a modest decline at the opening of trade on Friday.
The global forecast for the Asian markets is mildly pessimistic, thanks to mixed messages from the Federal Reserve. Utilities and technology stocks may come under pressure, although financials and oil companies are expected to provide support. The European and U.S. markets finished in negative territory, and now the Asian bourses are tipped to follow that lead.
The Hang Seng was flat on Thursday as gains among the airlines were offset by selling from the financials and coal miners.
For the day, the index collected 2.64 points or 0.01 percent to finish at 21,093.82 after trading between 20,970.93 and 21,130.74 on turnover of 56.32 billion Hong Kong dollars.
Among the gainers, Wharf Holdings added 0.5 percent, while Sun Hung Kai Properties gained 0.9 percent, Industrial and Commercial Bank of China climbed 1 percent, China Huiyuan surged 7.6 percent, China Southern Airlines climbed 3.57 percent, Cathay Pacific Airways added 2.51 percent and China Eastern Airlines rose 0.48 percent.
Finishing lower, China CITIC Bank fell 1.12 percent, while Bank of China was down 0.48 percent, Bank of Communications eased 0.46 percent, HSBC shed 0.4 percent, New World Development lost 1.4 percent, China Coal Energy declined 1.61 percent, China Shenhua dropped 1.14 percent and Yanzhou Coal retreated 1.06 percent.
The lead from Wall Street is broadly negative as stocks ended moderately lower on Thursday, with mixed indications from the Federal Reserve, the labor market and the earnings front prompting some selling in the equity markets. With the declines, the major averages pulled back further off their recent highs.
The markets came under pressure in the early afternoon following some unsettling comments from St. Louis Federal Reserve Bank President James Bullard, who spooked the markets when he said that the Fed's current policies are putting the U.S. at risk for "a Japanese-style deflationary outcome within the next several years."
While Bullard said the most likely course for the U.S. economy is a gradual recovery, he said that if prices drop, the Fed should think about buying more Treasury securities instead of promising to keep interest rates low for an "extended period."
Early gains in the markets were seen as the markets focused on a decline in jobless claims and the silver lining in a mixed bag of earnings reports.
Before the start of trading, the Labor Department released a report showing that jobless claims in the week ended July 24th dropped to 457,000 from the previous week's revised figure of 468,000. Economists had been expecting jobless claims to edge down to 460,000 from the 464,000 originally reported for the previous week.
In earnings news, Exxon Mobil Corp. (XOM) and Colgate-Palmolive Co. (CL) both reported second quarter earnings estimates that beat Wall Street projections but fell short of revenue expectations. Meanwhile, Motorola Inc. (MOT) reported adjusted second-quarter earnings and sales that were ahead of estimates.
After the markets closed for trading in the previous session, Japanese electronics giant Sony Corp. (SNE) reported a profit for the first quarter of fiscal 2011 compared to a loss in the same period last year. The company also raised its full year earnings guidance.
The major averages saw some downside in late-session dealing, slipping back into negative territory. The Dow fell by 30.72 points or 0.3 percent to 10,467.16, the NASDAQ declined by 12.87 points or 0.6 percent to 2,251.69 and the S&P 500 slid by 4.60 points or 0.4 percent to 1,101.53.
In economic news, the International Monetary Fund said on Thursday that China faces risks from a renewed weakening in the global recovery and a worsening credit quality. The country currently faces the challenge to sustain its strong growth performance while switching decisively to an economy that is powered by the country's households.
In its 2010 Article IV consultation staff report, the IMF pointed out that China needs to maintain the fiscal stimulus through 2010, while reorienting further toward fiscal measures that will spur consumption. If the recovery continues as envisaged, the government should begin gradually withdrawing fiscal stimulus in 2011 while continuing to expand near-term fiscal support for consumption.
For comments and feedback contact: editorial@rttnews.com
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.