The Hong Kong stock market closed the week positively on Friday, breaking a three-day losing streak during which it had declined by over 620 points, equivalent to a 3.7 percent drop. The Hang Seng Index now sits just above the 17,020-point mark and is anticipated to open positively again on Monday.
The global outlook for Asian markets is optimistic, bolstered by a favorable interest rate forecast. Both European and U.S. markets posted substantial gains, and it is expected that Asian markets will follow suit.
On Friday, the Hang Seng Index experienced slight gains, driven by technology stocks, though these were tempered by declines in the property and financial sectors. The index rose by 16.31 points, or 0.10 percent, to close at 17,021.31, with a trading range from 16,924.58 to 17,229.19.
Notable market movements included a 0.27 percent loss for both Alibaba Group and New World Development, while Alibaba Health Info surged by 3.49 percent. ANTA Sports and Country Garden each improved by 0.43 percent, China Life Insurance gained 0.57 percent, and Haier Smart Home soared by 6.10 percent. Conversely, China Mengniu Dairy dropped 0.58 percent, China Resources Land fell by 1.84 percent, and ENN Energy plummeted by 3.02 percent. Other declines included CITIC (0.14 percent), CSPC Pharmaceutical (0.34 percent), Galaxy Entertainment (1.03 percent), Hang Lung Properties (0.78 percent), and Henderson Land (0.67 percent). Gainers included CNOOC up 0.51 percent, Hong Kong & China Gas up 0.95 percent, JD.com up 3.02 percent, Lenovo up 0.20 percent, Meituan up 0.47 percent, Techtronic Industries up 0.54 percent, and Xiaomi Corporation up 0.99 percent. WuXi Biologics saw a decline of 0.94 percent, while Li Ning remained unchanged.
Wall Street presented a broadly positive lead with major indices opening higher on Friday and maintaining those levels throughout the day. The Dow Jones surged by 654.27 points, or 1.64 percent, to close at 40,589.34. Meanwhile, the NASDAQ rallied by 176.16 points, or 1.03 percent, and the S&P 500 gained 59.88 points, or 1.11 percent.
For the week, the Dow Jones added 0.8 percent, while the NASDAQ fell by 2.1 percent and the S&P 500 declined by 0.8 percent.
The strength on Wall Street was underpinned by the release of key inflation data from the Commerce Department, which reinforced expectations of a potential interest rate cut by the Federal Reserve in September. Additionally, revised data from the University of Michigan indicated that consumer sentiment in the U.S. had deteriorated to a lesser extent than previously estimated in July.
Oil prices declined on Friday due to concerns over demand related to the economic slowdown in China, coupled with hopes for a ceasefire in Gaza. West Texas Intermediate Crude oil futures for September fell by $1.12, or 1.4 percent, to settle at $77.16 per barrel, marking a weekly loss of 1.9 percent for WTI crude futures.
