The Hong Kong stock market rebounded on Tuesday, halting a six-day decline that saw a loss of nearly 900 points or 4.7 percent. The Hang Seng Index is now positioned just below the 19,220 mark and is likely to continue its upward trend on Wednesday.
Globally, the outlook for Asian markets is uncertain due to mixed signals concerning interest rate forecasts. European and U.S. markets remained largely unchanged, and Asian markets are expected to mirror this pattern.
On Tuesday, the Hang Seng saw significant gains driven by bargain hunting in sectors such as finance, oil, property, and technology. The index surged by 345.64 points, or 1.83 percent, closing at 19,219.78, with intraday trading ranging from 18,901.56 to 19,318.36.
Significant movements were observed among active stocks: Alibaba Group and Hang Lung Properties both saw an increase of 2.37 percent, Alibaba Health Info rose by 2.77 percent, ANTA Sports gained 0.64 percent, China Life Insurance increased by 2.15 percent, and China Mengniu Dairy inched up by 0.26 percent. Additionally, China Resources Land rose by 0.23 percent, CITIC climbed 1.08 percent, CNOOC by 1.25 percent, and CSPC Pharmaceutical gained 0.46 percent. Galaxy Entertainment increased by 1.56 percent, Haier Smart Home improved by 2.44 percent, though Henderson Land fell by 1.37 percent. Hong Kong & China Gas went up by 0.85 percent, Industrial and Commercial Bank of China gained 0.62 percent, JD.com surged 5.35 percent, Lenovo increased by 0.11 percent, Li Auto and Li Ning advanced by 3.35 percent and 2.32 percent respectively. Meituan soared 5.02 percent, while New World Development fell 0.71 percent. Nongfu Spring skyrocketed 5.38 percent, Techtronic Industries lost 0.46 percent, Xiaomi Corporation rallied 2.90 percent, and WuXi Biologics spiked by 4.14 percent.
Wall Street offered limited guidance, as major indices showed initial gains on Tuesday but quickly stabilized to end mixed. The Dow Jones rose by 221.16 points, or 0.52 percent, closing at 42,518.28. Conversely, the NASDAQ declined by 43.71 points, or 0.23 percent, ending at 19,044.39, while the S&P 500 edged up by 6.69 points, or 0.11 percent, to close at 5,842.91.
The early strength in Wall Street was attributed to a Labor Department report indicating that producer prices in December increased slightly less than expected. While this eased inflation and interest rate concerns, the overall rise in annual growth maintained a cautious buying approach. Traders appeared hesitant to make substantial moves pending the release of a key consumer price inflation report later in the day.
Oil prices retreated from five-month highs on Tuesday as investor attention shifted to the potential impact of proposed tariffs on imports by Donald Trump. West Texas Intermediate Crude oil futures for February decreased by $1.32, or approximately 1.67 percent, settling at $77.50 per barrel.
The material has been provided by InstaForex Company -
www.instaforex.com
