FX.co ★ Higher Open Called For Hong Kong Stock Market

The Hong Kong stock market experienced a rebound on Thursday, recovering after a one-day break in its preceding three-day rally during which it had surged nearly 700 points, equating to a 3.4 percent rise. The Hang Seng Index now rests slightly above the 20,950 mark and anticipates a favorable trend as it heads into Friday’s session.

Globally, the market outlook is optimistic following the Federal Reserve's decision to reduce its benchmark interest rate by 25 basis points. This sentiment was reflected in the European and U.S. markets, which mostly saw gains, setting a precedent that the Asian markets are likely to follow.

Thursday saw the Hang Seng closing significantly higher, with widespread gains, particularly in the financial and property sectors, along with positive movements in technology stocks. On that day, the index soared by 414.96 points, marking a 2.02 percent increase, and concluded at 20,053.34, having fluctuated between 20,370.44 and 20,986.31 throughout the trading session.

Among the notable performers, Alibaba Group rose by 1.32 percent, Alibaba Health Info jumped by 5.21 percent, ANTA Sports advanced by 3.90 percent, and China Life Insurance experienced a substantial increase of 8.66 percent. Other significant movements included China Mengniu Dairy up by 5.33 percent, China Resources Land by 3.57 percent, CITIC by 5.73 percent, CNOOC by 0.56 percent, CSPC Pharmaceutical by 2.06 percent, and Galaxy Entertainment by 5.06 percent. Additional performers included Haier Smart Home, up 1.26 percent, Hang Lung Properties, increasing by 1.17 percent, Henderson Land, adding 1.16 percent, Hong Kong & China Gas, gaining 0.99 percent, and the Industrial and Commercial Bank of China, surging by 3.16 percent. JD.com improved by 1.05 percent, while Lenovo dipped by 2.60 percent, Li Auto increased by 2.19 percent, Li Ning surged by 5.76 percent, and Meituan climbed by 5.60 percent. New World Development was up by 2.02 percent, Nongfu Spring by 4.12 percent, Techtronic Industries decreased by 1.63 percent, Xiaomi Corporation gained 0.91 percent, and WuXi Biologics strengthened by 2.10 percent.

The positive lead from Wall Street was evident as major indices opened mixed on Thursday but largely ended on an upward trend, with both the NASDAQ and S&P 500 achieving new record highs at closing. The Dow slightly decreased by 0.59 points, effectively remaining flat at 43,729.34, whereas the NASDAQ leaped 285.99 points, or 1.51 percent, to 19,269.46, and the S&P 500 moved up by 44.06 points, or 0.74 percent, to finish at 5,973.10.

Wall Street’s continued strength is underpinned by optimism surrounding the economic implications of former President Donald Trump's anticipated return to the White House, seen as beneficial for corporate sectors. The market also reacted positively to the Federal Reserve’s predictable decision to decrease interest rates by a quarter point.

In the commodities sector, oil futures closed significantly higher on Thursday. Traders evaluated the prospective impact of Donald Trump's presidency on geopolitical dynamics in parallel with the Federal Reserve's interest rate cut announcement. West Texas Intermediate Crude oil futures for December settled at $72.36 per barrel, marking a rise of $0.67 or 0.93 percent.