FX.co ★ Hong Kong Shares May See Profit Taking On Thursday

The Hong Kong stock market has been on an upward trajectory over the past three sessions, accumulating almost 1,000 points or a 6 percent increase. Currently, the Hang Seng Index is just over the mark of 17,200 points, although it is expected to stabilize on Thursday.

Concerns over the future of interest rates have led to a static global forecast for Asian markets. The European markets have seen a slight decline, and the index of US stocks has remained unchanged. It is predicted that Asian markets will respond to this situation in a different way.

The Hang Seng performance on Wednesday ended on a high note, with gains seen across all sectors, particularly in financial, property, and technology stocks. For the day, the index rose 372.34 points or 2.21 percent to close at 17,201.27, fluctuating between 16,934.65 and 17,217.86.

Gains in Hong Kong were widespread. Alibaba Group and Alibaba Health Info saw an increase by 3.87 percent and 2.23 percent respectively; ANTA Sports by 2.41 percent, and China Life Insurance rose by 5.57 percent. Other companies such as China Mengniu Dairy, China Resources Land, and CITIC also experienced growth.

On the other hand, Wall Street presented a less clear picture as the major averages remained largely unchanged. The Dow Jones fell slightly by 42.77 points or 0.11 percent to close at 38,460.92, while NASDAQ and the S&P 500 recorded a marginal increase.

Positive reactions to the most recent corporate profits news, particularly from companies such as Tesla, Texas Instruments, Visa, and Mattel, limited any further downward trend on Wall Street. However, concerns about the future of interest rates, particularly ahead of next week’s Federal Reserve meeting, took center stage among traders.

The price of oil fell on Wednesday over concerns about the demand outlook and easing tensions in the Middle East. The West Texas Intermediate Crude oil futures for June ended down by $0.55 at $82.81 a barrel.

Locally, Hong Kong is set to disclose March data for imports, exports, and trade balance later today. The previous data from February showed a monthly decrease of 1.8 percent in imports and a 0.8 percent decline in exports, resulting in a trade deficit of HKD41.7 billion.