The Hong Kong stock market has moved lower in two of three trading days since the end of the six-day winning streak in which it had surged more than 1,460 points or 7.8 percent. The Hang Seng Index finished just above the 20,330-point plateau, and now analysts are forecasting renewed support at the opening of trade on Thursday.
The global forecast for the Asian markets is fairly upbeat, following better than expected employment and manufacturing data out of the United States. Technology stocks figure to lead the rally, along with steel companies and brokerages. The European and U.S. markets finished firmly in the green, and the Asian bourses are expected to open in similar fashion.
The Hang Seng finished modestly lower on Wednesday following losses from the financial shares.
For the day, the index shed 57.12 points or 0.28 percent to finish at 20,333.37 after trading between 20,269.51 and 20,534.22 on volume of 61.64 billion Hong Kong dollars.
Among the decliners, Industrial and Commercial Bank of China shed 1.3 percent, while China Life lost 1.1 percent, Ping An eased 0.7 percent, Tencent Holdings dropped 3.2 percent and Cheung Kong fell 0.9 percent.
The lead from Wall Street is positive as stocks turned in a strong performance on Wednesday following the latest batch of economic data. The upward move on the day came after the markets experienced choppy trading in the previous session.
The strength was partly due to the release of a report from payroll processor ADP showing a continued increase in private sector employment in the month of January. ADP said employment in the non-farm private business sector rose by 170,000 jobs in January following a revised increase of 292,000 jobs in December.
Also, the Institute for Supply Management reported a continued expansion in manufacturing activity in January, with the index reaching a seven-month high. The ISM's purchasing managers index rose to 54.1 in January from a revised 53.1 in December, with a reading above 50 indicating growth in the manufacturing sector. That followed separate reports showing expansions in manufacturing activity in both Germany and China.
Additionally, the Commerce Department released a report showing a much bigger than expected increase in U.S. construction spending in December.
Positive sentiment was also generated by reports that social networking site Facebook may soon file paperwork for a $5 billion initial public offering. Morgan Stanley (MS), which was reportedly selected as the lead underwriter for the offering, rose by 4 percent on the day.
Shares of Whirlpool (WHR) also moved sharply higher after the appliance maker forecast 2012 earnings above analyst estimates. Whirlpool jumped by 13.5 percent to a five-month closing high.
On the other hand, online retailer Amazon.com (AMZN) came under pressure after reporting weaker than expected fourth quarter sales and providing disappointing guidance.
The major averages ended the session off their best levels of the day but still closed firmly in positive territory. The Dow rose 83.55 points or 0.7 percent to 12,716.46, the NASDAQ jumped 34.43 points or 1.2 percent to 2,848.27 and the S&P 500 advanced 11.67 points or 0.9 percent to 1,324.08. The strong gain on the day extended a recent upward move by the tech-heavy NASDAQ, which reached its best closing level in over six months.
In economic news, Hong Kong will on Thursday announce December data for retail sales. By value, sales are tipped to jump 20.5 percent on year after spiking 23.5 percent in November. By volume, sales are called higher by 15.1 percent on year after adding 16.9 percent in the previous month.
Also, Financial Secretary John Tsang said in his budget speech on Wednesday that Hong Kong's economy is set to undergo weak expansion in 2012 due to deteriorating global conditions. In a bid to please lower income group, Tsang announced tax rebates and subsidies.
The Hong Kong economy grew only 3 percent year-on-year in the fourth quarter, as exports plunged due to the weak external environment, affecting the overall economy. The third quarter growth was 4.3 percent, according to the 2012-13 budget.
As growth eased since the start of 2011, overall GDP growth reached just 5 percent for the whole year, unchanged from the government's earlier estimate.
Finally, the final HSBC China Manufacturing Purchasing Managers Index rose slightly to 48.8 in January compared with 48.7 in December, the latest survey results from Markit/HSBC showed on Wednesday. However, the final PMI reading was unchanged from a preliminary reading of 48.8.
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Market Analysis
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.