The Hong Kong stock market has experienced a substantial rally, rising for six consecutive sessions and gaining over 4,200 points or 21 percent. The Hang Seng Index is currently positioned just below the 22,450 mark, though some analysts suggest that a phase of profit-taking could be imminent.
Globally, Asian markets are expected to show little change as investors focus on the ongoing unrest in the Middle East. European and U.S. markets displayed stability with slight upward trends, indicating a similar outlook for Asian markets.
On the previous trading day, the Hang Seng saw significant gains across all sectors, particularly within technology and property segments. The index surged by 1,310.05 points, or 6.20 percent, concluding at 22,443.73 after fluctuating between 21,289.60 and 22,667.74.
Noteworthy stock movements included Alibaba Group increasing by 4.64 percent, Alibaba Health Info soaring 14.95 percent, and ANTA Sports gaining 7.89 percent. Other significant performances were noted in China Life Insurance, which jumped 9.73 percent, and China Mengniu Dairy, which rose 10.96 percent. Additionally, companies like China Resources Land, JD.com, and Meituan recorded substantial increases.
Wall Street's performance provided a mildly positive lead, with the major indices showing slight gains after a lower opening. The Dow inched up by 39.55 points or 0.09 percent to settle at 42,196.52. Similarly, the NASDAQ increased by 14.76 points or 0.08 percent, closing at 17,925.12, and the S&P 500 edged up by 0.79 points or 0.01 percent, ending at 5,709.54.
Early trading in U.S. markets was subdued due to concerns over rising tensions in the Middle East following Iran's missile attack on Israel. Despite Iran's claims of not seeking a broader conflict, the attack pushed oil prices higher, raising fears of increased inflation from elevated energy costs.
Additionally, a stronger-than-expected report on private sector job growth by payroll processor ADP affected market sentiment, reducing expectations of aggressive interest rate cuts by the Federal Reserve.
In commodities, oil futures saw a modest increase on Wednesday as traders anticipated supply disruptions due to Middle Eastern tensions. West Texas Intermediate crude for November delivery rose $0.27 or 0.39 percent, closing at $70.10 a barrel.
Domestically, Hong Kong is set to release its August retail sales data today, following a year-on-year decline of 11.8 percent in July.
