The Hong Kong stock market on Wednesday ended the two-day winning streak in which it had jumped more than 350 points or 1.7 percent. The Hang Seng Index now sits just above the 19,560-point plateau although it figures to bounce higher again on Thursday.
The global forecast for the Asian markets is upbeat on optimism over debt ceiling negotiations in the United States. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to follow the latter lead.
The Hang Seng finished sharply lower on Wednesday with damage across the board, especially among the financials, properties and technology stocks.
For the day, the index plummeted 417,68 points or 2.09 percent to finish at 19,560.57 after trading between 19,538.09 and 19,987.93.
Among the actives, Alibaba Group eased 0.35 percent, while Alibaba Health Info tanked 4.13 percent, ANTA Sports cratered 4.51 percent, China Life Insurance dropped 2.95 percent, China Mengniu Dairy stumbled 2.99 percent, China Resources Land crashed 4.83 percent, CITIC slipped 0.99 percent, CNOOC lost 1.85 percent, Country Garden plummeted 7.71 percent, CSPC Pharmaceutical declined 3.83 percent, Galaxy Entertainment fell 1.83 percent, Hang Lung Properties surrendered 4.01 percent, Henderson Land shed1.99 percent, Hong Kong & China Gas was down 0.54 percent, Industrial and Commercial Bank of China dipped 1.13 percent, JD.com sank 2.18 percent, Lenovo slid 1.54 percent, Li Ning retreated 3.48 percent, Meituan skidded 3.20 percent, New World Development weakened 3.38 percent, Techtronic Industries plunged 5.01 percent, Xiaomi Corporation slumped 3.39 percent and WuXi Biologics tumbled 3.96 percent.
The lead from Wall Street is solid as the major averages opened higher on Wednesday and accelerated throughout the day, ending near session highs.
The Dow surged 408.63 points or 1.24 percent to finish at 33,420.77, while the NASDAQ rallied 157.51 points or 1.28 percent to end at 12,500.57 and the S&P 500 advanced 48.87 points or 1.19 percent to close at 4,158.77.
The rebound on Wall Street reflected optimism that lawmakers will eventually reach an agreement on raising the U.S. debt ceiling following Tuesday’s meeting between President Joe Biden and top congressional leaders.
Regional banks helped lead the rebound on Wall Street, with shares of Western Alliance (WAL) spiking by 10.2 percent after the company said deposit growth for the current quarter exceeded $2 billion as of May 12.
In economic news, the Commerce Department unexpectedly reported a significant rebound in new residential construction in April, although building permits came in below expectations for the month.
Crude oil prices rose sharply Wednesday on expectations of higher demand and optimism over U.S. debt ceiling negotiations. West Texas Intermediate Crude oil futures for June jumped $1.97 or 2.8 percent at $72.83 a barrel.
Closer to home, Hong Kong will see April figures for unemployment later today, with forecasts pinning the jobless rate at 2.9 percent – down from 3.1 percent in March.
Market Analysis
Rebound Anticipated For Hong Kong Stock Market
2023-05-18 01:15:13
