The Hong Kong stock market has declined for two consecutive sessions, dropping almost 550 points or 3 percent during this period. The Hang Seng Index is now just above the 17,725 mark, but it is expected to stabilize on Wednesday.
The global forecast for Asian markets is positive, buoyed by robust earnings reports and optimistic interest rate projections. While European markets were down, U.S. markets were up, and Asian markets are anticipated to follow the latter’s trend.
On Tuesday, the Hang Seng Index experienced a significant decline, particularly affecting the technology, property, and financial sectors. The index plummeted by 287.96 points, or 1.60 percent, to close at its daily low of 17,727.98 after peaking at 17,899.55.
Key performers included:
- Alibaba Group: fell by 1.50%
- Alibaba Health Info: dropped 2.48%
- ANTA Sports: decreased 0.94%
- China Life Insurance: declined 1.63%
- China Mengniu Dairy: slipped 0.41%
- China Resources Land: down 1.85%
- CITIC: shed 1.09%
- CNOOC: fell 0.89%
- Country Garden: declined 0.40%
- CSPC Pharmaceutical, Hang Lung Properties, Galaxy Entertainment: each down 1.16%
- Henderson Land: retreated 1.97%
- Hong Kong & China Gas: tanked 2.34%
- Industrial and Commercial Bank of China: slumped 1.80%
- JD.com: surrendered 2.06%
- Lenovo: tumbled 2.01%
- Li Ning: plummeted 3.24%
- Meituan: dropped 1.34%
- New World Development: weakened 1.55%
- Techtronic Industries: dipped 0.42%
- Xiaomi Corporation: slid 0.73%
- WuXi Biologics: eased 0.36%
In the U.S., the Dow Jones surged 742.76 points or 1.85 percent to close at a record 40,945.48. The NASDAQ gained 36.77 points or 0.20 percent to finish at 18,509.34, and the S&P 500 increased by 35.98 points or 0.64 percent to end at 5,667.20, also a record high.
The strength on Wall Street was driven by positive earnings reports from companies like UnitedHealth (UNH), Bank of America (BAC), and Morgan Stanley (MS). Additionally, recent U.S. economic data reflected in a Commerce Department report showed retail sales remained unchanged in June. Meanwhile, a Labor Department report indicated that both import prices and export prices were unexpectedly flat, with the latter decreasing by 0.5 percent.
Gold stocks performed strongly amid a significant rise in the price of gold, pushing the NYSE Arca Gold Bugs Index up by 3.4 percent, reaching its highest close in over two years.
Conversely, oil prices declined for the third straight session due to concerns about demand and a slightly stronger dollar. West Texas Intermediate Crude oil futures for August fell by $1.15 or 1.4 percent to $80.76 a barrel.
