The Hong Kong stock market experienced a positive turnaround on Friday, recovering from a two-day decline during which it lost close to 200 points or 1 percent. The Hang Seng Index has now stabilized just above the 19,865-mark and holds the potential for further gains as the new week begins.
The outlook for Asian markets is generally optimistic, particularly concerning interest rate forecasts. While European and U.S. markets presented a mixed and relatively steady performance last Friday, Asian markets are likely to mirror this trend.
On Friday, the Hang Seng Index significantly rose, driven by widespread profit-taking, notably in the technology sector. The index surged by 305.45 points or 1.56 percent, closing at 19,865.85, having fluctuated between 19,566.29 and 19,934.72 throughout the trading session.
Several major players saw notable activity: Alibaba Group surged 2.44 percent, Alibaba Health Info rose 1.98 percent, ANTA Sports climbed 3.11 percent, and China Life Insurance increased by 2.67 percent. Other significant performances included China Mengniu Dairy, which was up by 0.60 percent, China Resources Land and Industrial and Commercial Bank of China both up 1.50 percent, and others like CITIC, CNOOC, and CSPC Pharmaceutical marked improvements of 0.90 percent, 0.45 percent, and 1.63 percent respectively. Additionally, companies such as JD.com and WuXi Biologics showed significant spikes, up 3.09 percent and 5.47 percent respectively.
The U.S. markets conveyed mixed signals as major indices opened on a high note last Friday. However, the Dow Jones Industrial Average lost momentum, retreating by 123.18 points or 0.28 percent to settle at 44,642.52. Meanwhile, the NASDAQ climbed 159.07 points or 0.81 percent to 19,859.77, and the S&P 500 dipped by 15.16 points or 0.25 percent to 6,090.27.
The downturn in the Dow was notably affected by a persistent drop in UnitedHealth shares following the CEO's recent tragedy. Conversely, the NASDAQ and S&P 500 benefitted from favorable reactions to the U.S. Labor Department's report showing robust employment growth for November, despite the unemployment rate inching up to 4.2 percent from October's 4.1 percent. This increase has strengthened the belief that the Federal Reserve might reduce interest rates by 25 basis points later this month.
Oil prices saw a decline on Friday amidst concerns over market over-supply. West Texas Intermediate Crude oil futures for January fell by $1.10 or 1.61 percent to $67.20 per barrel, marking almost a 1 percent decrease for the week.
