The Hong Kong stock market has climbed higher in four straight sessions, gathering more than 1,260 points or 6.5 percent along the way. The Hang Seng now rests just beneath the 20,650-point plateau although it’s expected to open under pressure on Thursday.
The global forecast for the Asian markets suggests consolidation on profit taking, with oil and retail stocks leading the way lower. The European and U.S. markets were down and the Asian markets are tipped to follow that lead.
The Hang Seng finished slightly higher on Wednesday as gains from the properties and oil companies were dented by weakness from the technology stocks.
For the day, the index gained 41.76 points or 0.20 percent to finish at 20,644.28 after trading between 20,389.61 and 20,711.93.
Among the actives, AAC Technologies dipped 0.35 percent, while Alibaba Group declined 0.61 percent, Alibaba Health Info lost 0.45 percent, ANTA Sports climbed 1.14 percent, China Life Insurance eased 0.18 percent, China Mengniu Dairy slid 0.38 percent, China Petroleum and Chemical (Sinopec) gained 0.51 percent, China Resources Land jumped 1.60 percent, CITIC and Nongfu Spring both shed 0.60 percent, CNOOC added 0.91 percent, Country Garden soared 2.31 percent, CSPC Pharmaceutical tanked 1.26 percent, Galaxy Entertainment perked 0.12 percent, Hang Lung Properties accelerated 2.08 percent, Henderson Land advanced 0.93 percent, Hong Kong & China Gas rallied 1.31 percent, Industrial and Commercial Bank of China fell 0.44 percent, JD.com tumbled 1.12 percent, Lenovo rose 0.36 percent, Li Ning spiked 2.27 percent, Meituan retreated 0.98 percent, Techtronic Industries surged 5.75 percent, Xiaomi Corporation slumped 0.51 percent, WuXi Biologics plunged 2.49 percent and New World Development was unchanged.
The lead from Wall Street is brutally negative as the major averages opened lower on Wednesday and saw the losses accelerate as the day progressed, ending deep in the red.
The Dow plummeted 1,164.52 points or 3.57 percent to finish at 31,490.07, while the NASDAQ plunged 566.37 points or 4.73 percent to close at 11,418.15 and the S&P 500 tumbled 165.17 points or 4.04 percent to end at 3,923.68.
Retail stocks led the markets lower, with the Dow Jones U.S. Retail Index plunging 7.7 percent to its lowest closing level in almost two years. Target (TGT) posted a particularly steep loss after the discount retailer reported quarterly earnings that missed expectations.
Substantial weakness was also visible among transportation stocks, as reflected by the 7.4 percent drop by the Dow Jones Transportation Average. Housing stocks also saw significant weakness on the day, dragging the Philadelphia Housing Sector Index down by 4.6 percent.
In economic news, the Commerce Department noted a modest decrease in new residential construction and building permits in April.
Crude oil futures settled lower on Wednesday despite data showing a drop in crude inventories last week. A stronger dollar amid rising prospects of sharper interest rate hikes by the Federal Reserve also contributed to the decline. West Texas Intermediate Crude oil futures for ended lower by $2.81 or about 2.5% at $109.59 a barrel.
Closer to home, Hong Kong will release April figures for unemployment later today; in March, the jobless rate was 5.0 percent.
Market Analysis
Hong Kong Stock Market Tipped To Open In The Red
2022-05-19 01:15:16