The Hong Kong stock market experienced another decline on Friday, reverting back to losses after a brief respite on Thursday when it had ended a two-day losing streak, shedding over 250 points or 1.2 percent. Currently, the Hang Seng Index rests slightly above the 19,970 threshold, with potential for a rebound on Monday.
The global outlook for Asian markets remains largely static as investors await the Federal Open Market Committee (FOMC) meeting later in the week. European and U.S. markets have exhibited slight declines, a trend that Asian markets are likely to mirror.
On Friday, the Hang Seng Index experienced a sharp drop, attributed mainly to weak performances in property and technology sectors. The index sank by 425.96 points, or 2.09 percent, settling at 19,971.24, after fluctuating between 19,927.27 and 20,238.21 during the day's trading.
Key performers included Alibaba Group, which fell by 2.56 percent, and Alibaba Health Info, which declined by 3.98 percent. ANTA Sports decreased by 3.61 percent, China Life Insurance took a hit of 4.62 percent, and China Mengniu Dairy lost 3.74 percent. Other notable losses came from China Resources Land, CITIC, and CNOOC, which dropped by 2.29 percent, 2.20 percent, and 1.67 percent, respectively. CSPC Pharmaceutical experienced a steep 4.19 percent decline, while Galaxy Entertainment, Haier Smart Home, and Hang Lung Properties also saw significant decreases. Minor declines were observed in companies like Techtronic Industries, which added a modest 0.19 percent, Xiaomi Corporation edging down by 0.79 percent, and WuXi Biologics slipping by 1.98 percent.
Wall Street presented a mild downward trend, as major indices initially opened positively on Friday but soon reversed. The Dow Jones Industrial Average fell by 86.04 points, or 0.20 percent, ending at 43,828.06. In contrast, the NASDAQ gained 23.92 points, or 0.12 percent, closing at 19,926.72, while the S&P 500 saw a marginal decline, ending down 0.16 points at 6,051.09.
For the week, the NASDAQ posted a 0.3 percent increase, whereas the S&P 500 declined by 0.6 percent, and the Dow dropped significantly by 1.8 percent.
The initial positive movement on Wall Street was in response to the favorable earnings report from Broadcom (AVGO), which exceeded expectations for its fiscal fourth quarter and projected robust demand for its custom AI chips. However, this enthusiasm waned as traders turned their focus to the impending Federal Reserve meeting. The general anticipation is for a 25 basis point reduction in interest rates, with close scrutiny on the Fed's accompanying statement for signals regarding further rate adjustments.
Oil futures closed on a higher note on Friday, propelled by renewed supply concerns following the imposition of additional sanctions on Iran and Russia. West Texas Intermediate Crude for January delivery rose by $1.27, or approximately 1.8 percent, settling at $71.29 per barrel.
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