Additional Support Anticipated For Hong Kong Shares

The Hong Kong stock market bounced higher again on Wednesday, one day after ending the two-day winning streak in which it had added more than 80 points or 0.5 percent. The Hang Seng Index now sits just beneath the 16,440-point plateau and it’s tipped to open in the green again on Thursday.

The global forecast for the Asian markets suggests mild upside on optimism over the outlook for interest rates. The European and U.S. markets were up and the Asian bourses are expected to follow suit.

The Hang Seng finished sharply higher on Wednesday with gains across the board, especially among the properties and technology stocks.

For the day, the index surged 275.45 points or 1.70 percent to finish at 16,438.09 after trading between 16,145.22 and 16,545.05.

Among the actives, Alibaba Group spiked 3.08 percent, while Alibaba Health Info soared 3.09 percent, ANTA Sports strengthened 2.24 percent, China Life Insurance climbed 1.95 percent, China Mengniu Dairy jumped 2.40 percent, China Resources Land added 0.68 percent, CITIC rallied 3.00 percent, CNOOC rose 0.48 percent, Country Garden increased 1.07 percent, CSPC Pharmaceutical gained 1.38 percent, Galaxy Entertainment improved 1.67 percent, Haier Smart Home fell 0.21 percent, Hang Lung Properties advanced 1.68 percent, Hong Kong & China Gas added 1.53 percent, Industrial and Commercial Bank of China collected 1.00 percent, JD.com surged 7.79 percent, Lenovo sank 0.72 percent, Li Ning soared 3.74 percent, Meituan rallied 2.72 percent, New World Development advanced 1.29 percent, Techtronic Industries surged 5.73 percent, Xiaomi Corporation jumped 2.19 percent, WuXi Biologics skyrocketed 9.08 percent and Henderson Land was unchanged.

The lead from Wall Street is positive as the major averages opened higher on Wednesday, faded midday but rallied late to finish modestly in the green.

The Dow added 75.86 points or 0.20 percent to finish at 38,661.05, while the NASDAQ advanced 91.96 points or 0.58 percent to close at 16,031.54 and the S&P 500 rose 26.11 points or 0.51 percent to end at 5,104.76.

The rebound on Wall Street reflected a positive reaction to congressional testimony by Federal Reserve Chair Jerome Powell.

Powell told the House Financial Services Committee it will likely be appropriate for the Fed to begin lowering interest rates at “some point this year,” although he reiterated officials need “greater confidence” inflation is moving sustainably toward 2 percent.

In economic news, payroll processor ADP said private sector employment in the U.S. increased by slightly less than expected in February.

Crude oil futures settled higher on Wednesday after data showed large declines in gasoline and distillate stockpiles last week. West Texas Intermediate Crude oil futures for April ended higher by $0.98 or 1.25 percent at $79.13 a barrel.