The Hong Kong stock market has experienced declines for two consecutive sessions, shedding over 310 points or approximately 1.7 percent. Currently, the Hang Seng Index is positioned just below the 19,450 mark and is poised for potential further declines on Wednesday.
Globally, Asian markets face a negative forecast due to renewed concerns regarding interest rate projections. While European markets displayed mixed results, U.S. markets ended in decline, indicating a trend that is likely to be mirrored by Asian markets.
On Tuesday, the Hang Seng Index saw significant declines with sectors such as properties, oil, and technology mostly in negative territory. The index dropped 240.71 points or 1.22 percent, closing at 19,447.58, fluctuating within a range of 19,252.61 to 19,668.65.
Examining individual performances, Alibaba Group fell by 0.91 percent, whereas Alibaba Health Information rose by 1.25 percent. ANTA Sports witnessed a sharp increase of 1.93 percent, China Mengniu Dairy gained 0.86 percent, while CITIC and CNOOC saw declines of 0.70 percent and 0.84 percent, respectively. CSPC Pharmaceutical fell 1.10 percent, Galaxy Entertainment surged 2.75 percent, and Haier Smart Home advanced by 1.35 percent. Hang Lung Properties had a minor increase of 0.17 percent, but Henderson Land and Hong Kong & China Gas dropped by 1.51 percent and 0.82 percent, respectively. Industrial and Commercial Bank of China rose slightly by 0.41 percent, while JD.com, Lenovo, and Li Auto declined by 0.52 percent, 1.42 percent, and 1.59 percent, respectively. Li Ning saw a significant increase of 2.91 percent, yet Meituan, New World Development, and Xiaomi Corporation faced declines, with Xiaomi plummeting 5.92 percent. WuXi Biologics also fell sharply by 2.53 percent, whereas China Life Insurance and China Resources Land remained unchanged.
Wall Street offered a pessimistic outlook as key indices opened with modest gains but soon reversed to close notably lower. The Dow Jones Industrial Average dropped 178.20 points or 0.42 percent to 42,528.36. The NASDAQ suffered a substantial fall of 375.30 points or 1.89 percent to end at 19,489.68, while the S&P 500 declined by 66.35 points or 1.11 percent, closing at 5,909.03.
This significant stock market pullback coincided with a marked rise in treasury yields, with the benchmark 10-year note reaching its highest closing level in eight months. The surge in treasury yields, prompted by upbeat U.S. economic data, has stoked fears about future interest rates. Specifically, the Institute for Supply Management reported an unexpected increase in U.S. service sector activity during December, with the prices index reaching a one-year high, raising concerns about persistent inflation. Moreover, the Labor Department revealed an unexpected rise in U.S. job openings for November.
Oil prices saw an upward trend on Tuesday due to potential supply shortages after China's decision to ban imports from Iran and Russia, coupled with severe cold weather in the U.S. West Texas Intermediate Crude oil futures for February settled at $74.25 a barrel, a rise of $0.69 or 0.94 percent.