FX.co ★ Rally May Stall For Hong Kong Stock Market

The Hong Kong stock market has experienced gains for the past two consecutive sessions, increasing by over 280 points or 1.4%. As a result, the Hang Seng Index is currently positioned just above the 20,760 mark. However, its progress may stall on Thursday due to prevailing global economic conditions.

The outlook for Asian markets appears negative, influenced by rising treasury yields and concerns over future interest rates. Both the European and U.S. markets experienced declines, which likely sets the tone for Asian exchanges to follow suit.

On Wednesday, the Hang Seng saw a significant uptick, driven by advancements in technology stocks, financial firms, and oil enterprises, while the property sector displayed mixed results. The index climbed 261.20 points, or 1.27%, closing at 20,760.15 with trading fluctuations between 20,448.84 and 20,942.26.

In terms of individual stocks: Alibaba Group inched up 0.05%, Alibaba Health Info ascended 2.29%, ANTA Sports gained 0.17%, China Life Insurance jumped 3.66%, and China Mengniu Dairy increased 2.33%. Meanwhile, China Resources Land dipped 0.19%, CITIC rose 0.97%, CNOOC went up 0.43%, and CSPC Pharmaceutical decreased by 1.24%. Notably, Galaxy Entertainment gained 1.03% while Haier Smart Home dropped 3.17%. Hang Lung Properties rose 0.76%, whereas Hong Kong & China Gas fell 0.33%, Industrial and Commercial Bank of China advanced 1.06%, JD.com soared 2.98%, Lenovo declined 1.25%, Li Auto surged 6.34%, Li Ning decreased substantially by 4.86%, Meituan rocketed 5.47%, New World Development saw a 0.25% increase, Nongfu Spring fell 1.63%, Xiaomi Corporation surged 4.50%, WuXi Biologics climbed 2.55%, with Henderson Land and Techtronic Industries remaining static.

Turning to the U.S. market, Wall Street presented a weak front as major indices opened lower on Wednesday and sustained their positions in the red for the rest of the day, although some recovery was seen from session lows. The Dow dropped 409.94 points or 0.96%, ending at 42,514.95. Additionally, the NASDAQ fell 296.47 points or 1.60% to close at 18,276.47, and the S&P 500 decreased by 53.78 points or 0.92%, settling at 5,797.42.

Wall Street's weakness is attributed to a continued upward trend in treasury yields, reaching their highest point in nearly three months, fueled by apprehension that the Federal Reserve might decelerate interest rate reductions more than previously anticipated.

Though it's anticipated that the Fed will reduce rates by a quarter-point next month, uncertainty grows regarding a potential rate cut in December.

In commodity markets, oil prices witnessed a decline on Wednesday. Contributing factors include data indicating a greater than expected rise in U.S. crude oil inventories last week and the impact of a stronger dollar. Consequently, West Texas Intermediate crude oil futures for December dropped by $0.97, or 1.35%, to $70.77 per barrel.