FX.co ★ Soft Start Predicted For Hong Kong Stock Market

The Hong Kong stock market ended its two-day decline on Wednesday, during which it had shed nearly 550 points or 3 percent. The Hang Seng Index closed just below the 17,740-point mark, although it is anticipated to dip again on Thursday.

Globally, markets in Asia are expected to consolidate, particularly among technology and semiconductor companies. Both European and U.S. markets were predominantly lower, and it is likely that Asian markets will reflect this trend.

The Hang Seng Index recorded a modest gain on Wednesday, buoyed by advances in property stocks and technology companies. The index rose by 11.43 points or 0.06 percent, finishing at 17,739.41, after fluctuating between 17,658.68 and 17,807.68 during the trading session.

Notable performances among major stocks included Alibaba Group, which increased by 1.06 percent, and Alibaba Health Information, which surged by 8.57 percent. ANTA Sports climbed 1.43 percent, China Life Insurance jumped 2.58 percent, China Mengniu Dairy soared 5.42 percent, and China Resources Land inched up 0.38 percent. CITIC added 0.69 percent, while CNOOC saw a significant drop of 5.16 percent. Country Garden advanced 1.20 percent, CSPC Pharmaceutical rose 0.67 percent, Galaxy Entertainment and Hang Lung Properties both gained 0.73 percent, Henderson Land jumped 2.45 percent, and Hong Kong & China Gas strengthened by 2.23 percent. Industrial and Commercial Bank of China dipped 0.23 percent, JD.com improved by 2.11 percent, Lenovo fell 1.12 percent, Li Ning surged 6.03 percent, Meituan gained 1.36 percent, New World Development increased 2.10 percent, Techtronic Industries accelerated 4.77 percent, Xiaomi Corporation spiked 2.69 percent, and WuXi Biologics climbed 2.17 percent.

From Wall Street, the picture was mixed. The Dow Jones Industrial Average rose, reaching a fresh record high with a gain of 243.60 points or 0.59 percent, closing at 41,198.08. In contrast, the NASDAQ and S&P 500 both ended in negative territory, with the NASDAQ falling 512.42 points or 2.77 percent to 17,996.92, and the S&P 500 dropping 78.93 points or 1.39 percent to 5,588.27.

The decline in Wall Street was driven largely by semiconductor stocks, which suffered sharp losses following reports that President Joe Biden's administration might implement stricter trade regulations against companies in its ongoing chip dispute with China. Additional negative sentiment arose after former President Donald Trump suggested that Taiwan should compensate the U.S. for defense costs, alleging that the country had taken "about 100 percent" of America's chip business.

In economic developments, the Commerce Department reported a notable rebound in new residential construction and building permits in the U.S. in June. Another report from the Federal Reserve indicated that industrial production in the U.S. had increased more than expected in the previous month.

Oil prices experienced a significant rise on Wednesday, driven by data indicating an unexpected sharp decline in U.S. crude inventories from the previous week and supported by a weaker dollar. West Texas Intermediate Crude oil futures for August surged $2.09 or 2.6 percent to $82.85 per barrel.

Looking ahead, Hong Kong is set to release its unemployment figures for June later today, with the jobless rate expected to remain steady at 3.0 percent.