The Hong Kong stock market has seen an upward trend over the past two trading sessions, amassing over 400 points, equivalent to a 2.1 percent increase. As a result, the Hang Seng Index now hovers just below the 19,300 mark, with potential for further gains anticipated on Thursday.
The outlook for Asian markets is optimistic, spurred by a moderation in U.S. inflation figures that have alleviated concerns regarding future interest rates. Both European and U.S. markets ended their sessions on a strong note, setting a positive precedent for Asian exchanges.
On Wednesday, the Hang Seng recorded a slight dip, with varied performances across sectors such as finance, oil, technology, and real estate. The index advanced by 66.20 points or 0.34 percent, concluding the day at 19,286.07, after fluctuating between 19,149.94 and 19,319.22 throughout the trading period.
Key movements among individual stocks included Alibaba Health Info dropping 1.80 percent, ANTA Sports down by 0.32 percent, and China Life Insurance decreasing by 0.45 percent. Meanwhile, China Mengniu Dairy saw a decline of 2.11 percent, whereas China Resources Land experienced a jump of 1.59 percent. CITIC fell 0.48 percent, CNOOC saw a marginal rise by 0.10 percent, CSPC Pharmaceutical declined 0.69 percent, and Galaxy Entertainment edged down 1.38 percent. Haier Smart Home dropped 1.99 percent, while Henderson Land rose by 0.93 percent. Hong Kong & China Gas and Lenovo saw reductions of 0.34 percent and 1.08 percent, respectively. Industrial and Commercial Bank of China climbed by 1.02 percent, JD.com added 0.88 percent, and Li Auto significantly decreased by 3.12 percent. Li Ning advanced 1.07 percent, Meituan experienced a minor gain of 0.14 percent, and New World Development and Techtronic Industries saw spikes of 2.87 percent and 2.93 percent, respectively. Xiaomi Corporation decreased by 0.44 percent, WuXi Biologics fell by 1.02 percent, with Alibaba Group, Hang Lung Properties, and Nongfu Spring remaining unchanged.
Wall Street offered a robust lead, with major indexes quickly moving upwards and maintaining those levels throughout the trading period. The Dow Jones Industrial Average surged by 703.27 points or 1.65 percent to close at 43,221.55, while the NASDAQ soared 466.84 points or 2.45 percent to end at 19,511.23, and the S&P 500 increased by 107.00 points or 1.83 percent to finish at 5,949.91.
Wall Street's rally was largely a reaction to the U.S. Labor Department’s notable report on consumer price inflation for December. Despite a slight increase in consumer prices exceeding projections, the annual growth rate of core consumer prices slowed unexpectedly, generating positive market sentiment. Additionally, encouraging earnings reports from financial heavyweights such as JPMorgan Chase, Goldman Sachs, and Citigroup further fueled investor confidence.
Oil prices surged on Wednesday, driven by a drop in U.S. crude inventories last week and potential supply disruptions arising from new sanctions on Russia. February futures for West Texas Intermediate Crude oil rose by $2.54, representing a 3.3 percent increase, settling at $80.04 per barrel.
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