Plus   Neg

Higher Open Anticipated For Hong Kong Bourse

The Hong Kong stock market has alternated between positive and negative finishes through the last five trading days since the end of the seven-day winning streak in which it had surged more than 1,950 points or 7 percent. The Hang Seng Index now rests just beneath the 29,720-point plateau although it's expected to rebound again on Thursday.

The global forecast for the Asian markets is upbeat on easing bond yields and surging crude oil prices. The European and U.S. markets were up and the Asian bourses figure to follow suit.

The Hang Seng finished sharply lower on Wednesday with damage across the board - especially from the oil, property and technology stocks.

For the day, the index plummeted 914.40 points or 2.99 percent to finish at 29,718.24 after trading between 29,532.68 and 30,792.88.

Among the actives, AAC Technologies dipped 2.06 percent, while AIA Group surrendered 3.80 percent, Alibaba Group slipped 1.94 percent, ANTA Sports tanked 4.85 percent, BOC Hong Kong shed 0.59 percent, China Life Insurance dropped 0.95 percent, China Mengniu Dairy declined 4.41 percent, China Petroleum and Chemical (Sinopec) lost 2.64 percent, China Resources Land tumbled 1.93 percent, CITIC lost 0.45 percent, CNOOC plummeted 7.31 percent, CSPC Pharmaceutical dropped 2.69 percent, Galaxy Entertainment sank 1.51 percent, Hang Lung Properties slid 2.12 percent, Henderson Land retreated 1.46 percent, Hong Kong & China Gas jumped 1.74 percent, Industrial and Commercial Bank of China skidded 1.90 percent, Meituan plunged 6.87 percent, New World Development fell 2.21 percent, Ping An Insurance declined 1.25 percent, Sands China sank 2.85 percent, Sun Hung Kai Properties shed 2.65 percent, Techtronic Industries tumbled 4.75 percent, Xiaomi Corporation retreated 4.45 percent and WuXi Biologics skidded 4.66 percent.

The lead from Wall Street is broadly positive as stocks opened in the red on Wednesday but then quickly surged well into the green, accelerating into the close.

The Dow spiked 424.51 points or 1.35 percent to finish at 31,961.86, while the NASDAQ jumped 132.77 points or 0.99 percent to end at 13,597.97 and the S&P 500 gained 44.06 points or 1.14 percent to close at 3,925.43.

The rally on Wall Street came as bond yields gave ground after spiking early in the session. The yields on ten-year notes and thirty-year bonds reached their highest intraday levels in a year before pulling back as the day progressed.

The pullback by yields followed comments from Federal Reserve Chair Jerome Powell, who again reiterating that the Fed is likely to maintain its ultra-easy monetary policy for the foreseeable future.

On the U.S. economic front, the Commerce Department noted a much bigger than expected jump in new home sales in the U.S. in January.

Crude oil prices were sharply higher Wednesday, fueled by the likely impact of last week's severe cold conditions on refinery activity in Texas. West Texas Intermediate Crude oil futures for April ended up $1.55 or 2.5 percent at $63.22 a barrel, the highest settlement since January 2020.

Closer to home, Hong Kong will see January figures for imports, exports and trade balance later today. In December, imports were up 14.1 percent on year and exports gained an annual 11.7 percent for a trade deficit of HKD45.7 billion.

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