FX.co ★ Hong Kong Shares May Find Traction On Thursday

In its latest stretch, the Hong Kong stock market has experienced losses for four consecutive sessions, resulting in a drop of over 550 points or 3.2 percent. The Hang Seng Index is currently positioned slightly above the 17,470-point mark, with expectations leaning towards stabilization on Thursday.

The overall forecast for Asian markets looks optimistic, driven by a robust performance in technology shares ahead of crucial inflation data. Both European and U.S. markets posted gains, and a similar positive opening is anticipated for the Asian exchanges.

On Wednesday, the Hang Seng Index closed modestly lower, influenced by declines in technology stocks, gains in financials, and a mixed performance in the property sector. The index decreased by 51.56 points or 0.29 percent to close at 17,471.67, moving within a range of 17,455.08 to 17,765.88 during the trading session.

In terms of individual performances, Alibaba Group rose by 0.83 percent, while Alibaba Health Information improved by 0.97 percent. ANTA Sports fell by 1.00 percent, China Life Insurance increased by 1.89 percent, China Mengniu Dairy gained 1.03 percent, and China Resources Land dropped by 1.70 percent. Other notable movements included CITIC declining by 1.12 percent, CNOOC plunging by 3.49 percent, and Country Garden inching up by 0.43 percent. CSPC Pharmaceutical slipped by 1.15 percent, Galaxy Entertainment reduced by 0.59 percent, Hang Lung Properties rose by 0.76 percent, and Henderson Land added 0.96 percent. Additionally, Hong Kong & China Gas advanced by 0.99 percent, Industrial and Commercial Bank of China edged up by 0.23 percent, JD.com surged by 1.66 percent, Lenovo dropped by 0.70 percent, and Li Ning retreated by 1.46 percent. Meituan saw a modest rise of 0.17 percent, New World Development fell by 0.55 percent, Nongfu Spring surged significantly by 4.44 percent, Techtronic Industries dipped by 1.34 percent, Xiaomi Corporation tumbled by 1.71 percent, and WuXi Biologics declined by 1.66 percent.

Wall Street provided a broadly positive lead, with major indices opening flat but climbing steadily to close with strong gains near their session highs. The Dow Jones Industrial Average jumped 429.39 points or 1.09 percent to finish at 39,721.36. The NASDAQ surged 218.16 points or 1.18 percent, reaching a record high of 18,647.45. The S&P 500 also reached a record, rising 56.93 points or 1.02 percent to close at 5,633.91.

The rally on Wall Street was largely driven by strength in technology stocks, as evidenced by the notable performance of the tech-heavy NASDAQ. Investors were likely encouraged by optimism regarding interest rates ahead of the release of critical consumer price inflation data.

In congressional testimony, Federal Reserve Chair Jerome Powell indicated that encouraging economic data would bolster the central bank's confidence that inflation is moving sustainably toward its 2 percent target, potentially leading to an interest rate cut.

In commodity markets, oil futures closed higher on Wednesday. Data revealing a larger-than-anticipated drop in U.S. crude inventories last week contributed to this rise. West Texas Intermediate Crude oil futures for August settled at $82.10 a barrel, marking an increase of $0.69.