The Hong Kong stock market experienced declines over two consecutive sessions, losing over 140 points, equivalent to a 0.7% drop. The Hang Seng Index is now positioned slightly above the 19,720 mark, though there is anticipation of a positive trend for Monday’s trading.
The forecast for Asian markets is cautiously optimistic due to a more favorable outlook on interest rates. While European markets showed a downward trend, U.S. markets exhibited an upward movement, which is expected to influence Asian markets positively.
On Friday, the Hang Seng Index ended marginally lower, with mixed outcomes across technology, oil, and property sectors. Specifically, the index decreased by 31.80 points or 0.16%, concluding at 19,720.70, after fluctuating between 19,692.68 and 19,875.90 during the trading day.
Among notable performers, Alibaba Group fell by 3.44%, Alibaba Health Info decreased by 0.58%, ANTA Sports rose by 1.77%, China Life Insurance dipped 0.14%, and China Mengniu Dairy increased slightly by 0.11%. CITIC, CNOOC, and CSPC Pharmaceutical had varied performances, with CNOOC dropping 1.21%, while CITIC and CSPC Pharmaceutical added 0.34% and 0.63% respectively. Other significant movements included Galaxy Entertainment gaining 0.44%, Haier Smart Home sliding 1.11%, Hang Lung Properties advancing 0.65%, and Henderson Land declining 0.21%. Meanwhile, Hong Kong & China Gas and JD.com faced declines of 0.49% and 3.03%, while Lenovo rallied 1.18%. Li Auto and Xiaomi Corporation showed notable gains of 2.42% and 2.76% respectively. Additionally, Meituan and WuXi Biologics saw minor increases, while China Resources Land and CLP Holdings remained unchanged.
The sentiment from Wall Street was positive, as initial losses quickly turned into gains by the end of Friday’s session. The Dow surged by 498.06 points or 1.18% to reach 42,840.26, with the NASDAQ rising 199.80 points or 1.03% to 19,572.60, and the S&P 500 climbing 63.77 points or 1.09% to 5,930.85.
Despite this rally, the weekly performance recorded significant declines, with the Dow down 2.3%, the S&P 500 falling 2.0%, and the NASDAQ dropping 1.8%.
Wall Street's rally followed the Commerce Department's report on personal consumption expenditures (PCE), which showed slower growth than anticipated. As this measure is the Federal Reserve's preferred gauge for consumer price inflation, the report encouraged investors to purchase stocks at lower prices after mid-week declines.
In the oil markets, futures edged higher on Friday as the U.S. dollar eased from recent highs due to the softer PCE readings, alleviating concerns about prospective interest rate cuts. West Texas Intermediate crude oil futures ticked up $0.08 or approximately 0.1% to $69.46 a barrel but recorded a weekly decline of 2.5%.
