The Hong Kong stock market has experienced an upward trend over the last three consecutive sessions, gaining more than 640 points, or approximately 3.4%. As a result, the Hang Seng Index is positioned slightly above the 19,520 level, although there's potential for profit-taking on Friday.
Globally, the outlook for Asian markets appears weak, with anticipated declines led by oil and technology shares. While European markets closed on a positive note, the U.S. markets saw downturns, potentially setting a similar trajectory for Asian markets.
On Thursday, the Hang Seng made significant gains, largely fueled by strength in financial, property, oil, and technology sectors. Specifically, the index rose 2.35 points, or 1.23%, to close at 19,522.89, fluctuating between 19,345.19 and 19,664.39 throughout the day.
In terms of individual performances, Alibaba Group ascended by 0.63%, Alibaba Health Info rose by 0.30%, and ANTA Sports marked an increase of 1.21%. China Life Insurance moved up 1.82%, while China Mengniu Dairy, China Resources Land, and CITIC recorded improvements of 0.67%, 0.89%, and 1.43%, respectively. CNOOC improved by 1.44%, and CSPC Pharmaceutical gained 1.38%. On the downside, Galaxy Entertainment dipped by 2.18%, even as Haier Smart Home, Hang Lung Properties, Henderson Land, Hong Kong & China Gas, and Industrial and Commercial Bank of China recorded gains. JD.com, Lenovo, Li Ning, and Meituan saw notable increases. Conversely, Nongfu Spring experienced a slight decline of 0.71%, while Techtronic Industries, Xiaomi Corporation, and others observed a boost. Li Auto remained unchanged.
Turning to Wall Street, the mood was less optimistic. After initial gains, major indices reversed to spend most of Thursday in negative territory. The Dow decreased by 68.42 points, or 0.16%, closing at 43,153.13. The NASDAQ dropped 172.95 points, or 0.89%, ending at 19,338.29, while the S&P 500 fell 12.57 points, or 0.21%, to 5,937.34.
This volatile activity on Wall Street emerged as investors reevaluated market sentiments in light of Wednesday's rally, which marked the largest daily percentage gains in over two months. Their considerations included a batch of U.S. economic reports, covering areas such as weekly job claims, retail sales, and import prices. The reports generally aligned with expectations, fueling optimism around a potential Federal Reserve interest rate reduction in the first half of the year.
Additionally, oil prices underwent a sharp decline on Thursday. This decrease followed the announcement of a ceasefire agreement between Israel and Hamas, facilitated and endorsed by the United Nations Security Council. Consequently, West Texas Intermediate Crude oil futures for February concluded lower by $1.36, or 1.7%, at $78.68 a barrel.
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