On Thursday, the Hong Kong stock market closed its two-day downturn, during which it had declined more than 260 points or 1.4 percent. The Hang Seng Index now stands slightly above 18,530 points and is predicted to start Friday on a high.
The global economic forecast is positive, largely due to an improved outlook on interest rates. European and U.S. markets were on the rise and Asian exchanges are expected to follow suit.
On Thursday, the Hang Seng noted significant gains across all sectors, with technology and property companies leading the way. The index increased by 223.95 points or 1.22 percent to close at 18,537.81.
Market highlights included Alibaba Group's growth by 0.85 percent, a steep rise of 3.59 percent by Alibaba Health Info, and advances of 0.49 percent by ANTA Sports and Hong Kong & China Gas. Other notable performers were China Life Insurance, China Mengniu Dairy, China Resources Land, CITIC, and CNOOC, who all showed advancements, while Country Garden rose by 4.38 percent and Lenovo's significant jump of 8.72 percent.
Wall Street was moderately positive on Thursday with the key averages opening lower but quickly rallied and remained in the green for the rest of the day. The Dow, NASDAQ, and S&P 500 all finished the day with gains.
The surge in Wall Street is credited to the release of a Labor Department report, showing a larger than anticipated increase in first-time claims for U.S. unemployment benefits last week. This news boosted renewed confidence that the Federal Reserve might reduce interest rates in the coming months.
As per CME Group's FedWatch Tool, while most anticipate the Federal Reserve will maintain the interest rates for June, the chances of a rate cut by September stand at 89.3 percent.
Further, optimism about demand and fresh data showing an unexpected drop in U.S. crude inventories last week buoyed oil prices. Consequently, West Texas Intermediate crude oil futures for June ended higher by $0.27 at $79.26 a barrel.
