Rebound Predicted For HK Stock Market

02-Sep-2017 Intellasia | Nasdaq | 6:00 AM Print This Post

The Hong Kong stock market has finished lower in two of three trading days since the end of the five-day winning streak in which it had surged more than 800 points or 3 percent. The Hang Seng Index now rests just above the 27,970-point plateau, although it’s expected to bounce higher again on Friday.

The global forecast for the Asian markets is broadly positive thanks to solid economic data and a surge in the price of crude oil. The European and US markets were up and the Asian markets are expected to follow that lead.

The Hang Seng finished modestly lower on Thursday following losses from the financials and insurance companies.

Among the actives, Kunlun Energy surged 5.72 percent, while Industrial and Commercial Bank plummeted 2.66 percent, New World Development spiked 2.49 percent, Galaxy Entertainment climbed 1.76 percent, Li & Fung jumped 1.44 percent, BOC Hong Kong skidded 0.99 percent, CNOOC tumbled 0.85 percent, Lenovo Group dropped 0.70 percent, Hong Kong & China Gas added 0.68 percent, Ping An Insurance fell 0.64 percent, China Life lost 0.40 percent, China Petroleum and Chemical advanced 0.34 percent and Belle International was unchanged.

The lead from Wall Street is firm as stocks moved higher on Thursday, adding to the gains posted in the two previous sessions.

The Dow rose 59.92 points or 0.3 percent to 21,952.35, while the NASDAQ jumped 60.35 points or 1 percent to 6,428.66 and the S&P 500 climbed 14.02 points or 0.6 percent to 2,471.61.

The strength followed a slew of economic data, including a Commerce Department report noting a bigger than expected gain in personal income. And the National Association of Realtors showed an unexpected fall in pending home sales in July.

Also, the Labour Department said first-time claims for US unemployment benefits edged slightly higher in the week ended August 26th. And MNI Indicators noted continued growth in Chicago-area business activity in August.

Crude oil futures surged Thursday, rebounding after the US Energy Department’s release of 1 million barrels a day from the Strategic Petroleum Reserve after Hurricane Harvey disrupted refinery operations on the Texas coast.

October West Texas Intermediate rose $1.27 or 2.8 percent to $47.23 a barrel on the New York Mercantile Exchange. Still, oil was down 6 percent for the month.


Category: Hong Kong

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