In anticipation of the National Day holiday on Tuesday, the Hong Kong stock market experienced an upward trajectory for five consecutive sessions, amassing over 2,900 points or approximately 14.8%. The Hang Seng Index is currently positioned slightly above the 21,130-point mark, although a correction was anticipated for Wednesday.
The global outlook for Asian markets appears weak, primarily due to escalating geopolitical tensions in the Middle East. While European markets presented mixed performance, U.S. equities declined, suggesting a potential downtrend for Asian markets as well.
The Hang Seng continued to see gains on Monday, driven by strong performances in the technology and entertainment sectors, even as the property sector showed a mixed response.
For the day, the Hang Seng Index advanced by 501.38 points, or 2.43%, closing at 21,133.68, following intraday movements between 20,789.93 and 21,488.75.
Key performers included Alibaba Group, which spiked 7.32%, and Alibaba Health Info, which skyrocketed by 29.85%. Other notable gains were seen in ANTA Sports (up 3.45%), China Life Insurance (up 6.26%), and JD.com (soaring 9.93%). However, some stocks faced declines, such as Henderson Land, which plummeted 3.50%, and Lenovo, which tumbled 2.93%.
Meanwhile, Wall Street closed on a negative note, with major indices opening lower on Tuesday and remaining in negative territory throughout the session.
The Dow Jones Industrial Average fell by 173.18 points or 0.41% to finish at 42,156.97. The NASDAQ Composite dropped 278.81 points or 1.53% to close at 17,910.36, while the S&P 500 Index declined 53.73 points or 0.93% to end at 5,708.75.
This downturn was primarily attributed to rising tensions in the Middle East following Iran's ballistic missile attack on Israel. The assault, carried out by Iran's Islamic Revolutionary Guard Corps, was described as retaliation for the deaths of Hezbollah leader Hassan Nasrallah and others in recent Israeli airstrikes.
A senior White House official indicated that the U.S. had intelligence suggesting Iran's preparations for an imminent missile attack, further contributing to the early sell-off in stocks.
The geopolitical concerns overshadowed reports of continued contraction in U.S. manufacturing activity in September and an unexpected increase in U.S. job openings in August.
Oil prices surged on Tuesday due to the potential for supply constraints amid the heightened tensions. West Texas Intermediate Crude oil futures for November rose by $1.66, or nearly 2.5%, to settle at $69.83 per barrel.