On Thursday, the Hong Kong stock market concluded its two-day losing streak where it had dipped almost 600 points or 3.8 percent. Now, the Hang Seng Index just exceeds a 15,560-point plateau and it seems likely that it will start in the green on Friday.
Many consider the heavy selling from earlier this week to be an overreaction, and with positive global forecasts for Asian markets, optimism is high. Despite a downward trend in the European markets, the U.S. stock exchanges improved and Asian markets are expected to follow suit.
On Thursday, the Hang Seng concluded with modest gains, signalling recovery from the technology stocks, entertainment companies, and properties. On that day, the index added 81.14 points or 0.52 percent, ending at 15,566.21 after trading fluctuated between 15,434.82 and 15,805.06.
Among the key players, Alibaba Group moved up 2.16 percent, Alibaba Health Info went up 2.45 percent, while ANTA Sports fell 0.69 percent. Other events include a 1.00 percent gain by China Life Insurance, a 2.55 percent surge from China Mengniu Dairy, and a 1.48 percent decrease by China Resources Land.
As observed from Wall Street, the primary averages commenced the day slightly higher and gradually amplified, concluding near the peak of the session.
Following Wednesday's selloff, traders collected stocks at discounted rates contributing to Wall Street's rally. Despite signs that an interest rate cut by the Federal Reserve in March is doubtful, economists maintain that a reduction by the central bank is inevitable.
A persistent decline in treasury yields may have also piqued buying interest, with the yield on the benchmark 10-year note touching its lowest point in over a month.
Unexpectedly, U.S. jobless benefits claims saw a slight increase last week, according to the Labor Department. Moreover, the Institute for Supply Management reported an increase in U.S. manufacturing activity in January, despite it still indicating contraction.
In global peacekeeping, negotiations for a truce in the Israel-Hamas crisis affected oil futures, which settled lower on Thursday. However, a potential rise in energy demand capped the downside. West Texas Intermediate Crude oil futures for March fell $2.03 or 2.7 percent, concluding at $73.82 per barrel.
