FX.co ★ Rally May Stall For Hong Kong Stock Market

In anticipation of the upcoming Labor Day holiday, the Hong Kong stock market has seen a consistent rise for seven sessions in a row, accumulating almost 1,600 points or a 9.3 percent increase. Currently, the Hang Seng Index stands just above the 17,760-point mark and is expected to consolidate the gains on the following day.

The worldwide outlook for Asian markets is showing signs of softness, after the announcement of the Federal Reserve's interest rate decision. European markets experienced a drop, while U.S. stock exchanges had varying results, predicting a similar inconclusive trend in Asian markets.

The Hang Seng concluded Tuesday with a modest increase, as a result of varying performances from the financial, property, and technology sectors. The index marginally rose, gaining 16.12 points or 0.09 percent, to conclude at 17,763.03.

Among the active players, Alibaba Health Info experienced a 2.31 percent decline, while ANTA Sports gained 0.39 percent. China Life Insurance fell by 1.14 percent, China Mengniu Dairy increased by 0.74 percent, and China Resources Land fell by 0.52 percent. Other significant movements included Haier Smart Home's impressive surge of 7.83 percent, and Techtronic Industries' significant gain of 3.80 percent.

In relation to Wall Street, there is minimal guidance as the major indices exhibited steadiness on Wednesday, only to then spike after the Federal Reserve's monetary policy announcement. However, this surge was short-lived, with the markets concluding mixed and minimally altered.

In the end, the Dow rose by 87.37 points or 0.23 percent to close at 37,903.29, while the NASDAQ dropped 52.34 points or 0.33 percent to close at 15,605.48. The S&P 500 fell by 17.30 points or 0.34 percent to finish at 5,018.39.

This late-day volatility occurred post the Federal Reserve's announcement of keeping interest rates steady, due to a lack of progress towards achieving the 2 percent inflation target. Federal Reserve members reiterated the need for more substantial confidence in sustainable inflation movement toward 2 percent prior to any consideration of rate cuts.

On another note, ADP released a report indicating that private sector employment had increased more than anticipated in April.

Furthermore, oil prices hit a seven-week low after a surprising leap in U.S. crude reserves last week. West Texas Intermediate Crude oil futures for June ended lower by $2.93, standing at $79.00 a barrel - the lowest since March 12.

Locally, Hong Kong is expected to release preliminary gross domestic product (GDP) data for the first quarter. This follows a GDP increase of 0.4 percent on a quarterly basis and 4.3 percent annually in the previous quarter.