The Hong Kong stock market has experienced a consecutive rise over the past two sessions, accumulating gains of nearly 1,000 points or 4.6%. The Hang Seng Index is now positioned just below the 23,100 mark, although it is expected to open on a downtrend on Tuesday. The outlook for Asian markets is subdued, with investors awaiting significant economic and earnings data later this week. In contrast, European markets showed mixed and flat performances, while U.S. equities faced a notable downturn, likely influencing Asian markets to follow suit.
On Monday, the Hang Seng finished with considerable gains, seeing an across-the-board rise, particularly in property stocks and technology firms.
The day saw the index rise by 362.91 points or 1.60%, closing at 23,099.78, with trading ranges extending from 22,719.91 to 23,241.74. Key performers included Alibaba Group, which rose by 0.61%, while Alibaba Health Info and CNOOC advanced by 2.32% each. ANTA Sports rallied with a 3.91% increase, China Life Insurance soared 12.42%, and China Mengniu Dairy surged by 8.05%. CITIC catapulted 12.88%, CSPC Pharmaceutical grew by 4.55%, and Galaxy Entertainment climbed 9.34%. Haier Smart Home jumped 3.77%, Hang Lung Properties improved by 2.76%, although Henderson Land slipped by 0.38%. Hong Kong & China Gas and JD.com, along with Li Auto, saw increments of 0.93% and 1.26% respectively. Lenovo leaped by 3.95%, Li Ning surged 8.93%, Meituan slightly declined by 0.09%, New World Development saw a rise of 3.43%, and Nongfu Spring advanced by 2.20%. Techtronic Industries fell by 2.63%, Xiaomi Corporation jumped 5.30%, WuXi Biologics rallied by 6.53%, while China Resources Land and the Industrial and Commercial Bank of China remained unchanged.
Wall Street's influence turned out to be weak as significant indices commenced lower on Monday, continuing to decline and concluding near session's lows.
The Dow fell by 398.51 points or 0.94% to conclude at 41,954.24. Meanwhile, the NASDAQ dropped 213.95 points or 1.18%, wrapping up at 17,923.90, and the S&P 500 decreased by 55.13 points or 0.96%, closing at 5,695.94.
The downturn on Wall Street was primarily due to traders recalibrating their interest rate outlook. Following encouraging jobs data released on Friday, traders now anticipate only a 0.25% reduction in interest rates at the Federal Reserve’s next policy meeting on November 7.
A cautious sentiment prevails as investors await forthcoming data on consumer and producer price inflation, in addition to earnings reports from several major banks.
On the geopolitical stage, Israeli defense forces have escalated airstrikes on Gaza and Beirut concurrently, marking the first anniversary of the cross-border attack by Hamas in Israel, which incited the ongoing Middle East conflict.
Oil prices experienced a sharp increase on Monday, driven by the potential threat of supply disruptions in the Persian Gulf amid rising tensions in the Middle East. West Texas Intermediate Crude oil futures for November surged $2.76, equating to a 3.71% rise, settling at $77.14 per barrel, marking the highest close in nearly eight weeks.