FX.co ★ Hang Seng May Reverse Friday's Losses

The Hong Kong stock market experienced a downturn in two out of the last three trading sessions, following a prior run of success over a three-day period in which it gained nearly 700 points, equal to a 3.4% increase. Currently, the Hang Seng Index hovers slightly below the 20,730-point benchmark, although projections suggest a potential upward trend as the market opens on Monday.

The outlook for Asian markets is varied, with investors digesting the implications of the U.S. election results. While European markets have seen declines, U.S. markets have posted gains, hinting that Asian markets might exhibit a mixed performance.

On Friday, the Hang Seng Index posted a considerable decline, adversely affected by losses in financial sectors, property investments, and oil company stocks, whereas the technology sector presented a mixed picture. Specifically, the index fell by 225.15 points, or 1.07%, closing at 20,728.19, after fluctuating between 20,705.12 and 21,355.44 during the session.

Regarding individual stocks, Alibaba Group decreased by 1.73%, with Alibaba Health Info dropping by 2.70%. ANTA Sports saw a slight gain of 0.34%, while China Life Insurance fell by 2.36%, and China Mengniu Dairy plummeted by 2.74%. Other notable movements include China Resources Land plunging by 2.90%, CITIC declining by 2.40%, and CNOOC decreasing by 1.55%. CSPC Pharmaceutical, Galaxy Entertainment, and several others experienced notable declines, although companies like JD.com, Lenovo, and Xiaomi posted gains.

Wall Street provided a positive signal, with major indices starting Friday on a high note and ending with modest gains, achieving new record closing levels. The Dow closed up by 259.65 points, or 0.59%, at 43,988.99. Meanwhile, the NASDAQ increased slightly by 17.32 points, or 0.09%, ending at 19,286.78, and the S&P 500 rose by 22.44 points, or 0.38%, finishing at 5,995.54.

For the week, the NASDAQ surged by 5.7%, the S&P 500 spiked by 4.7%, and the Dow climbed by 4.6%. This uptick is attributed to a favorable response to former President Donald Trump's clear victory in the U.S. presidential elections, which is perceived as a positive development for businesses.

Meanwhile, market participants continued to assess the Federal Reserve’s anticipated decision on Thursday to reduce interest rates by a quarter-point. Fed Chair Jerome Powell emphasized that future rate decisions are not predetermined, and the central bank will evaluate each meeting independently.

On a different note, oil prices fell significantly on Friday amid concerns about demand and data revealing a decline in China's oil imports, coupled with disappointment over the scale of China's new stimulus initiatives. Specifically, December futures for West Texas Intermediate Crude oil dropped by $1.98, or 2.7%, settling at $70.38 per barrel, although there was a 1% gain for the week.