The Hong Kong stock market has seen 10 consecutive days of positive performance, gaining over 2,370 points, that amounts to an increase of 13.8 percent. The Hang Seng Index is currently just above an 18,575-point mark and is predicting an equally favorable outcome for the upcoming Tuesday trading session.
Investor confidence in the international markets, particularly Asian, is being bolstered by hope for a favorable interest rate climate. This optimism is also reflected in the strong performance of the European and U.S markets which are predicted to have a positive influence on the Asian markets. On Monday, the Hang Seng had a slight increase, boosted by gains from the technology and financial sectors but hindered somewhat by the property market's weaker performance.
The index for the day increased by 102.38 points or by 0.55 percent to close at 18,578.30 after seeing trading within the range of 18,389.54 and 18,590.17 points. Among the IPOs, Alibaba Group had a rise of 0.38 percent, while Alibaba Health Info saw a 3.05 percent decline. Declines were also experienced by ANTA Sports and China Life Insurance, losing 0.27 percent and 0.36 percent respectively. China Mengniu Dairy and CITIC both posted increases of 3.46 percent and 0.79 percent respectively.
In the U.S., major averages started Monday strong and retained their momentum throughout, boosting investor confidence. The Dow rose by 176.59 points or 0.46 percent, closing at 38,852.27 points, while the NASDAQ had an impressive gain of 1.19 percent or 192.92 points, ending at 16,349.25 points; the S&P 500 also improved by 1.03 percent or 52.95 points, to close the day at 5,180.74 points.
This positive activity can be largely attributed to dovish remarks from Federal Reserve Chair Jerome Powell which alleviated concerns that the Federal Reserve might increase interest rates, following a disappointing job growth report in April. Investors' confidence is now leaning towards a potential rate cut in the subsequent months.
In the energy sector, crude oil futures saw a modest increase on Monday following Saudi Arabia's decision to increase its selling price for European and Asian markets. The West Texas Intermediate Crude oil futures for June ended the day with a 0.47 percent increase or $0.37 higher, concluding at $78.48 a barrel.
