In recent sessions, the Hong Kong stock market has experienced a decline, with the Hang Seng Index losing over 50 points, equating to a drop of 0.3%. As of now, the index is positioned slightly above the 20,040-point mark, and it is anticipated to encounter further downward pressure as the market opens on Tuesday.
Globally, the outlook for Asian markets appears fragile, largely due to anticipated profit-taking activities towards the end of the year, particularly affecting technology stocks. With European and U.S. markets exhibiting downward trends, it is likely that Asian bourses will follow a similar pattern at the opening.
On Monday, the Hang Seng concluded the day with moderate losses, primarily driven by declines in the property sector and a mixed performance among technology companies. For the day, the index decreased by 49.04 points or 0.24%, closing at 20,041.42, after fluctuating between 19,968.07 and 20,193.09.
Among notable market movements, Alibaba Group reduced by 0.43%, Alibaba Health Info dropped 1.47%, ANTA Sports fell 2.50%, and China Life Insurance slightly rose by 0.54%. Other shifts included China Mengniu Dairy falling 1.96%, China Resources Land declining 1.53%, CNOOC rising by 0.96%, and CSPC Pharmaceutical along with Henderson Land slipping by 0.63%. Galaxy Entertainment saw a substantial drop of 3.10%, while Haier Smart Home and Hang Lung Properties decreased by 1.29% and 0.64%, respectively. Industrial and Commercial Bank of China edged up 0.19%, whereas JD.com fell by 0.88% and Lenovo saw a significant drop of 3.41%. Further activities involved Li Auto decreasing 2.29%, Li Ning by 1.57%, Meituan declining by 1.23%, and New World Development losing 0.57%. Techtronic Industries dipped 0.19%, Xiaomi Corporation advanced 0.88%, WuXi Biologics surged by 2.19%, with CITIC, Nongfu Spring, and Hong Kong & China Gas remaining unchanged.
In Wall Street updates, the major indices opened lower on Monday, maintaining a downward trajectory throughout the session. The Dow Jones fell 418.48 points or 0.97% to close at 42,573.73, the NASDAQ dropped 235.25 points or 1.19% ending at 19,486.79, and the S&P 500 decreased by 63.90 points or 1.07% to finish at 5,906.94.
The ongoing weakness on Wall Street continues the selling trend initiated last Friday, as investors opt to secure profits approaching year-end. Despite this, the major indices remain on track to achieve significant gains in 2024, with the NASDAQ, particularly prevalent in technology, seeing a nearly 30% increase for the year.
Technology stocks, although recovering from their lowest points, still concluded the day markedly lower. Marked weakness was observed among semiconductor stocks, as indicated by the Philadelphia Semiconductor Index's 1.9% loss.
The scale of Wall Street's sell-off may have been intensified by lighter trading volumes, as numerous traders were absent ahead of the New Year's Day holiday on Wednesday.
In the oil markets, prices reached a five-week high on Monday, buoyed by recent data revealing a more substantial than anticipated reduction in U.S. crude inventories. Expectations for heightened demand from China further contributed to the rise. February futures for West Texas Intermediate Crude increased by 0.6% to settle at $70.99 a barrel.
The material has been provided by InstaForex Company -
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