The Hong Kong stock market has declined in two of the three trading days following a brief two-day upswing where it had gained over 230 points or 1.4%. The Hang Seng Index currently hovers just above the 17,300 mark and is anticipated to open lower on Friday.
Globally, Asian markets are expected to trend downwards, influenced by mounting fears of an economic slowdown. European and U.S. markets experienced significant drops, setting a negative tone likely to be echoed by Asian bourses.
On Thursday, the Hang Seng posted a slight decline, with losses from property stocks, gains in the financial sector, and mixed results from technology companies.
For the day, the index fell by 39.64 points or 0.23%, closing at 17,304.96, after fluctuating between 17,248.12 and 17,408.95.
Among the active stocks, Alibaba Group advanced by 0.26%, while Alibaba Health Information dropped by 1.51%. ANTA Sports lost 3.07%, China Life Insurance decreased by 0.55%, and China Mengniu Dairy fell by 1.98%. China Resources Land plunged by 3.41%, CITIC weakened by 1.11%, and CNOOC rose by 1.95%. Country Garden dropped by 2.76%, CSPC Pharmaceutical slipped by 0.86%, Galaxy Entertainment dipped by 0.15%, and Hang Lung Properties retreated by 2.61%. Henderson Land fell by 0.23%, while Hong Kong & China Gas saw an increase of 2.83%. Industrial and Commercial Bank of China added 0.23%, whereas JD.com plummeted by 3.89%. Lenovo lost 0.40%, Li Ning plummeted by 4.52%, Meituan eased by 0.09%, New World Development shed 0.41%, Techtronic Industries rallied by 1.90%, Xiaomi Corporation stumbled by 0.95%, and WuXi Biologics decreased by 0.87%.
Wall Street's overall sentiment was negative, as major indices opened slightly higher on Thursday but quickly declined to finish significantly lower.
The Dow Jones Industrial Average fell by 494.82 points or 1.21%, closing at 40,347.97. The NASDAQ dropped 405.26 points or 2.30%, ending at 17,194.14, and the S&P 500 decreased by 75.62 points or 1.37%, finishing at 5,446.68.
The sell-off was driven by disappointing economic data, which sparked concerns about the U.S. economic outlook and overshadowed optimism regarding a possible near-term interest rate cut by the Federal Reserve.
The Institute for Supply Management's report showed an unexpected acceleration in the contraction of U.S. manufacturing activity in July.
Additionally, the Labor Department reported a rise in first-time claims for U.S. unemployment benefits to their highest level in nearly a year last week.
Oil futures also fell on Thursday, influenced by economic concerns and their impact on oil demand. West Texas Intermediate Crude oil futures for September dropped by $1.60, or approximately 2.05%, closing at $76.31 per barrel.
