FX.co ★ Hong Kong Shares May Run Out Of Steam On Thursday

In recent trading, the Hong Kong stock market has experienced a three-day upward trend, accumulating gains exceeding 275 points, or an increase of 1.4%. This momentum has pushed the Hang Seng Index to hover above the 19,700 mark. However, this forward movement may encounter resistance on Thursday.

The outlook for Asian markets is presently uncertain, with potential minor declines expected, particularly in the oil and technology sectors. European markets dipped slightly, while U.S. markets displayed mixed and flat performances. Consequently, Asian markets are also predicted to experience minimal fluctuations.

On Wednesday, the Hang Seng Index concluded with a modest gain, buoyed by property stocks. In contrast, energy sector stocks underperformed, and results were mixed among resource stocks.

Specifically, the index saw an increase of 41.34 points, equivalent to 0.21%, closing at 19,705.01 after trading within the range of 19,575.91 and 19,752.93. Within the active stocks, Alibaba Group decreased by 0.59%, Alibaba Health Info increased by 0.52%, ANTA Sports rose by 0.19%, and China Life Insurance gained 0.26%. China Mengniu Dairy appreciated by 1.06%, while China Resources Land decreased by 0.21%, and CITIC gained 0.56%. CNOOC saw a decline of 0.35%, while CSPC Pharmaceutical advanced by 0.58%. Meanwhile, Galaxy Entertainment surged by 1.07%, Hang Lung Properties gained 0.63%, and Henderson Land added 0.60%. Conversely, Hong Kong & China Gas fell by 0.50%, with the Industrial and Commercial Bank of China dipping by 0.63%. JD.com increased by 0.22%, Lenovo dropped by 0.11%, Li Auto fell 0.77%, while Li Ning soared by 1.37%. Notably, Meituan surged by 1.69%, New World Development rose by 0.42%, and Nongfu Spring sharply declined by 1.87%. Techtronic Industries rallied by 1.33%, Xiaomi Corporation dropped 1.06%, WuXi Biologics increased by 1.05%, and Haier Smart Home remained unchanged.

In the U.S., the trajectory on Wall Street was less definitive, with key indices predominantly in negative territory for much of Wednesday's trading before a late uptick led to mixed, minor changes. The Dow Jones Industrial Average rose by 139.53 points, equating to an increase of 0.32%, closing at 43,408.47. Meanwhile, the NASDAQ decreased by 21.33 points, or 0.11%, to settle at 18,966.14, and the S&P 500 witnessed a negligible increase of 0.13 points, essentially unchanged, at 5,917.11.

The late-session volatility was driven by optimism surrounding Nvidia's (NVDA) earnings report, although, upon release post-market, the results, while robust, did not meet high expectations. Trading activity remained relatively subdued due to the absence of significant U.S. economic data, and investors exercised caution amidst rising tensions between Ukraine and Russia.

Oil prices declined on Wednesday amid weak demand concerns and reported increases in U.S. crude inventories. Specifically, West Texas Intermediate crude oil futures for December saw a reduction of $0.52 or 0.75%, settling at $68.87 per barrel.

Looking closer to home, Hong Kong is set to report October’s consumer price index figures today, following a 0.1% monthly rise and a 2.2% annual increase in inflation reported in September.