The Hong Kong stock market has experienced a downturn over the last three sessions, losing over 550 points or 3%. Currently, the Hang Seng Index hovers just above the 19,150 mark, but there is potential for recovery on Tuesday.
The Asian markets are poised for a positive day, reflecting optimism about the global economic outlook, despite the dampening effect of low oil prices. Both European and U.S. markets showed gains, setting a positive precedent for Asian exchanges.
On Monday, the Hang Seng Index saw a modest decline, largely due to downturns in the property sector and a mixed performance from technology stocks. The index fell by 78.98 points or 0.41% to close at 19,150.99, after fluctuating between 19,102.06 and 19,351.06 throughout the day.
Key stocks showed varied performances: Alibaba Group increased by 1.55%, while Alibaba Health Info fell by 0.85%. ANTA Sports decreased by 1.98%, China Life Insurance declined by 1.11%, and China Mengniu Dairy retreated by 1.78%. China Resources Land dropped 0.88%, CITIC saw a 0.23% fall, whereas CNOOC rose by 1.52%. CSPC Pharmaceutical and Henderson Land both slid by 0.20%, while Galaxy Entertainment decreased by 0.92%. Haier Smart Home experienced a setback of 2.06%, and Hang Lung Properties lost 0.48%. Conversely, Hong Kong & China Gas increased by 0.17%, but JD.com and Meituan both dropped significantly by 3.05%. Lenovo recorded a gain of 0.44%, Li Auto rose by 1.75%, Li Ning declined by 1.15%, and New World Development plunged by 4.32%. Nongfu Spring strengthened by 1.42%, Techtronic Industries rallied 2.10%, Xiaomi Corporation decreased slightly by 0.53%, WuXi Biologics rose 0.14%, and the Industrial and Commercial Bank of China remained unchanged.
In the U.S., Wall Street's major indices opened higher on Monday and maintained positive territory throughout the trading session. The Dow increased by 440.06 points or 0.99% to 44,736.57, the NASDAQ gained 51.19 points or 0.48% closing at 20,220.36, and the S&P 500 rose by 18.03 points or 0.30% to close at 5,987.37.
These gains extended the previous week's momentum, fueled by the positive response to President-elect Donald Trump's proposed nomination of billionaire hedge fund manager Scott Bessent as Treasury Secretary. Bessent is viewed as favorable towards the equity markets and a proponent of deficit reduction. He has also advocated for a phased implementation of Trump's planned tariff increases to mitigate inflationary effects.
Despite early enthusiasm, trading interest tapered off later in the day, as traders held back from making significant investments ahead of several upcoming key economic reports.
Oil prices fell sharply on Monday, impacted by reports suggesting that Israel and Hezbollah may soon reach a ceasefire agreement. West Texas Intermediate Crude oil futures for January dropped $2.30 or 3.2% to settle at $68.94 per barrel.
Back in Hong Kong, the latest data for October's imports, exports, and trade balance will be released today. In September, imports increased by 1.4% from the previous month, and exports rose by 4.7%, resulting in a trade deficit of HKD 53.2 billion.