FX.co ★ Lower Open Anticipated For Hong Kong Stock Market

The Hong Kong stock market has experienced a downturn over the last two sessions, losing over 440 points, or 2.3 percent. The Hang Seng Index currently hovers just below the 19,200-point mark, and it is anticipated to continue its decline on Thursday.

The global outlook for Asian markets appears bleak, influenced by concerns over interest rates. Both European and U.S. markets saw declines, setting a precedent for a similar trend in Asian markets.

The Hang Seng ended slightly lower with mixed performances across financial shares, property stocks, and technology companies. Specifically, the index fell by 25.02 points, or 0.13 percent, to close at 19,195.60, after fluctuating between 19,149.41 and 19,359.68 throughout the day.

Among the significant movers, Alibaba Group dropped by 1.66 percent, while Alibaba Health Info rose by 1.61 percent. ANTA Sports increased by 1.59 percent, China Life Insurance was up 0.81 percent, and China Mengniu Dairy advanced 0.98 percent. CITIC saw a modest gain of 0.12 percent, whereas CNOOC declined by 0.94 percent. Country Garden surged by 7.58 percent, while CSPC Pharmaceutical and Hengan International both decreased by 0.91 percent. Galaxy Entertainment rallied by 1.77 percent, and Hang Lung Properties dipped by 0.24 percent. JD.com plunged by 2.27 percent, Lenovo soared by 12.18 percent, and Li Ning increased by 4.11 percent. Meituan fell by 0.66 percent, New World Development jumped by 2.37 percent, Techtronic Industries slid by 0.88 percent, and Xiaomi Corporation gained 0.73 percent. WuXi Biologics edged down by 0.15 percent, while Henderson Land, Hong Kong & China Gas, Industrial and Commercial Bank of China, and China Resources Land remained unchanged.

Wall Street presented a weak lead, with the major averages maintaining a narrow range for the first half of Wednesday before dropping significantly towards the end of the day. The Dow Jones Industrial Average fell by 201.95 points, or 0.51 percent, to finish at 39,671.04. The NASDAQ decreased by 31.08 points, or 0.18 percent, closing at 16,801.54, and the S&P 500 declined by 14.40 points, or 0.27 percent, ending at 5,307.01.

This downward trend on Wall Street was attributed to Federal Reserve minutes that indicated officials might keep interest rates at their current levels longer than previously anticipated. The April 30-May 1 meeting minutes highlighted disappointing inflation readings from the first quarter and strong economic momentum indicators. While there was discussion about reducing policy restrictions in the event of unexpected labor market weakening, there was also a mention of a willingness to raise rates further if inflation risks arose.

Oil prices dropped to a two-month low on Wednesday following data showing an unexpected increase in U.S. crude oil inventories last week. West Texas Intermediate crude oil futures for July settled down by $1.09, or 1.4 percent, at $77.57 per barrel.

On the local front, Hong Kong is expected to release April consumer price figures later today; in March, overall inflation was steady month-over-month and up 2.00 percent year-over-year.