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

The Hong Kong stock market has seen gains for two consecutive trading days, rising by over 50 points or 0.3 percent. As a result, the Hang Seng Index currently sits just below the 17,780-point mark, though it is expected to dip again on Friday.

The global outlook for Asian markets is weak, with sustained selling pressure anticipated on technology and semiconductor stocks. Given that European and U.S. markets have mostly declined, Asian markets are likely to follow this trend.

On Thursday, the Hang Seng registered modest gains, driven by advances in oil and financial stocks. However, these gains were offset by weaknesses in technology shares and mixed performance in the property sector.

For the day, the index added 39.01 points, or 0.22 percent, to close at 17,778.41, after fluctuating between 17,623.74 and 17,864.12.

Notable performers included Alibaba Group, which declined by 0.66 percent, and Alibaba Health Information, which fell by 0.88 percent. China Life Insurance gained 0.72 percent, while China Mengniu Dairy edged up by 0.13 percent. China Resources Land rose by 0.94 percent, and CNOOC surged by 1.89 percent. Country Garden dipped by 0.20 percent, whereas CSPC Pharmaceutical climbed by 1.00 percent. Galaxy Entertainment increased by 0.15 percent, and Haier Smart Home soared by 2.75 percent. Hang Lung Properties gained 0.73 percent, but Henderson Land dropped by 0.43 percent. Hong Kong & China Gas eased by 0.16 percent, while JD.com and Lenovo saw declines of 0.47 percent and 0.75 percent, respectively. Li Ning plunged by 2.65 percent, Meituan rose by 0.25 percent, and New World Development rallied by 1.54 percent. Nongfu Spring surged by 6.48 percent, Techtronic Industries tumbled by 1.10 percent, Xiaomi Corporation added 0.36 percent, WuXi Biologics fell by 0.35 percent, and ANTA Sports, CITIC, and Industrial and Commercial Bank of China remained unchanged.

Wall Street's performance on Thursday was grim, with the major indices opening slightly higher but quickly turning negative. The Dow fell by 533.06 points or 1.29 percent to close at 40,665.02. The NASDAQ dropped by 125.70 points or 0.70 percent to end at 17,871.22, and the S&P 500 sank by 43.68 points or 0.78 percent to finish at 5,544.59.

The downturn on Wall Street was partly due to concerns about the short-term market outlook following Wednesday's tech sell-off. This was triggered by reports that the Biden administration is considering stricter trade regulations targeting companies involved in its chip crackdown on China.

In U.S. economic news, the Labor Department revealed that first-time claims for unemployment benefits rose more than anticipated last week. Additionally, the Federal Reserve Bank of Philadelphia reported more widespread growth in regional manufacturing for July. The Conference Board noted a slight decrease in its index of leading U.S. economic indicators for June.

Oil futures saw a slight decline on Thursday amid concerns over oil demand from China and the dollar's recovery impacting prices. West Texas Intermediate Crude oil futures for August settled down $0.03 at $82.82 per barrel.