The Hong Kong stock market has experienced an upward trend over the last two sessions, with a rally adding over 850 points, equivalent to a 4.2% increase. This has propelled the Hang Seng Index to a position slightly above the 20,410-point mark. However, investors might opt to secure their profits on Tuesday.
The forecast for Asian markets appears less optimistic, affected by the downturn in technology stocks and in anticipation of significant U.S. inflation data due later this week. While European markets showcased mixed results, U.S. markets finished lower, suggesting that Asian markets may experience an average outcome.
On Monday, the Hang Seng Index achieved substantial gains, especially in technology and financial sectors. It rose by 548.24 points, or 2.76%, closing at 20,414.09, with trading oscillating between 19,695.51 and 20,433.73.
Leading contributors included Alibaba Group and Xiaomi Corporation, both climbing by 3.51%. Alibaba Health Info surged by 5.82%, ANTA Sports rose 5.41%, China Life Insurance escalated 5.46%, and China Mengniu Dairy improved by 2.61%. China Resources Land increased by 3.79%, CITIC advanced 2.90%, while CNOOC grew 1.81%. CSPC Pharmaceutical climbed 3.00%, Galaxy Entertainment rose 2.26%, Haier Smart Home spiked 4.56%, and Hang Lung Properties gained 4.50%. Henderson Land increased by 2.00%, Hong Kong & China Gas tipped up 0.34%, Industrial and Commercial Bank of China advanced 1.47%, JD.com rose 3.82%, and Lenovo increased by 1.94%. Li Auto and Li Ning surged by 4.14% and 5.06% respectively, Meituan gained 5.73%, New World Development improved by 2.93%, Nongfu Spring accelerated by 4.09%, Techtronic Industries added 2.16%, and WuXi Biologics skyrocketed by 9.57%.
A negative influence from Wall Street set the tone as key indices seemed initially mixed on Monday but soon declined and remained negative throughout the session. The Dow Jones Industrial Average dropped 240.59 points, or 0.54%, closing at 44,401.93. The NASDAQ fell by 123.08 points, or 0.62%, ending at 19,736.69, and the S&P 500 declined by 37.42 points, or 0.61%, to settle at 6,052.85.
Nvidia shares significantly affected the markets, with the semiconductor company falling 2.6% following an ongoing inquiry by Chinese authorities into potential antitrust violations by the firm. This uncertainty added to the caution on Wall Street as traders now turn their attention to the upcoming U.S. inflation data, which is pivotal.
Despite expectations that the Federal Reserve will cut interest rates by another 25 basis points next week, there remains ambiguity regarding the continuation of these cuts into the next year.
Furthermore, oil prices saw an uptick, driven by geopolitical tensions and optimism around potential monetary policy easing by the Chinese central bank to stimulate economic growth. West Texas Intermediate Crude oil futures for January increased by $1.17, or 1.74%, closing at $68.37 per barrel.
