KGI Asia Commentary
Hang Seng Index rose 249 points on Thursday
The Hang Seng Index closed at 17,641 points for the day, rose 249 points or 1.4%. The Hang Seng Technology Index reported at 3,508 points, rose 74 points or 2.2%. The HSCEI Index rose 82 points, or 1.3%, to 6,224 points. The market turnover was HK$97.4 billion.
S&P 500 ends lower as yields rise ahead of Powell's speech
The S&P 500 ended lower on Thursday, pressured by rising yields as investors opted to be cautious a day before Federal Reserve Chairman Jerome Powell speaks at Jackson Hole. The Dow Jones Industrial Average fell 177 points, or 0.4%, the S&P 500 fell 0.8%, and the Nasdaq Composite fell 1.6%. Peloton Interactive shares soared 34% as the connected fitness company's sales returned to growth for the first time in nine quarters and its plan to turn a profit came into effect. Shares of enterprise software maker Snowflake fell 14% after the company reported second-quarter earnings and revenue that beat expectations, but its tepid guidance failed to reassure investors in a fiercely competitive market. Advance Auto Parts shares fell more than 17% after the auto parts retailer reported disappointing second-quarter earnings and slashed its full-year forecast.
Jobless claims rise; manufacturing activity declines
Data released on Thursday showed that the number of Americans filing new applications for unemployment benefits increased by 4,000 in the latest week, to a seasonally adjusted 232,000. While the data was in line with expectations, it added to concerns about a cooling U.S. labor force. At the same time, the S&P Global Flash US Manufacturing PMI fell to 48.0 in August. The reading was below economists' expectations of 49.0 and down from July's 49.6.
Hong Kong Stock Connect had a net outflow of HK0.08bn on Thursday of which CSPC Pharma (1093) had the largest net inflow, reaching HK$0.40bn; followed by Tracker Fund (2800). Xiaomi (1810) recorded the largest net outflow at HK$1.27bn, followed by Tencent (700).
Wen Kit Kenny is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to:https://apps.sfc.hk/publicregWeb/indi/AJF244/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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