The Hong Kong stock market has finished higher now in two straight sessions, adding nearly 280 points or 1.2 percent along the way. The Hang Seng Index finished just above the 21,940-point plateau, although now investors are bracing for renewed selling pressure when the market opens on Friday.
The global forecast for the Asian markets suggests consolidation on renewed concerns over the economy and the debt limit in the United States. Technology stocks are expected to see continued pressure, along with steel companies and airlines. The European and U.S. markets finished firmly in the red, and the Asian markets are expected to follow that lead.
The Hang Seng finished barely higher on Thursday as gains from the utilities were dented by weakness from the financial shares.
For the day, the index collected 13.32 points or 0.06 percent to finish at 21,940.20 after trading between 21,747.45 and 21,945.02 on volume of 61.80 billion Hong Kong dollars.
Among the actives, Power Assets added 0.3 percent, Cheung Kong Infrastructure climbed 1.3 percent and China Mengniu jumped 3.3 percent, while China Life shed 0.2 percent.
The lead from Wall Street is fairly negative as stocks moved mostly lower on Thursday after failing to sustain an early upward move. The downturn came amid uncertainty about raising the debt limit as well as a fresh round of testimony from Federal Reserve Chairman Ben Bernanke.
While comments from Bernanke contributed to the markets' strength on Wednesday, the Fed Chief sought to clarify his remarks in testimony before Senate Banking Committee. Bernanke reiterated that the Fed is willing to deploy additional stimulus if conditions warrant, but he suggested that the central bank is not likely to take action in any time in the near future.
"The situation is more complex," Bernanke said. "Inflation is higher...We are uncertain about the near-term developments in the economy...We are not prepared at this point to take further action."
Traders also continued to express uncertainty about whether Democrats and Republicans can reach an agreement on raising the debt limit in order to avoid a default by the U.S. government. Amid the concerns about the debt limit debate, Moody's has placed its "AAA" debt rating on the U.S. under review for a possible downgrade.
The early strength came as traders reacted positively to a slew of economic data released before the start of trading, including reports showing an unexpected uptick in retail sales and a drop in weekly jobless claims to a nearly three-month low.
On the corporate news front, J.P. Morgan (JPM) rose by 1.8 percent after reporting second quarter earnings of $1.27 per share, higher than $1.09 per share in the year-ago quarter. Net revenues rose 7 percent to $26.78 billion. Analysts estimated earnings of $1.21 per share on revenues of $25.13 billion.
The major averages remained stuck firmly in negative territory going into the close of trading. The Dow fell 54.49 points or 0.4 percent to 12,437.12, the NASDAQ dropped 34.25 points or 1.2 percent to 2,762.67 and the S&P 500 slid 8.85 points or 0.7 percent to 1,308.87.
In economic news, China's fiscal revenue increased 27.6 percent on year in June to CNY 1.01 trillion, the Ministry of Finance said on Thursday. Expenditure grew 33.1 percent to CNY 1.08 trillion. During January to June, fiscal revenue climbed 31.2 percent on year, while the increase in expenditure was 31.4 percent. Fiscal revenue totaled CNY 5.69 trillion and expenditure at CNY 4.44 trillion. The ministry said robust economic growth during the first half of the year raised the government revenues.
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.