KGI Asia Commentary
HSI rose 167 points on Tuesday
The Hang Seng Index rose 167 points or 1.0% to 17,791 on Tuesday. HSTECH rose 77 points or 2.0% to 4,000 and HSCEI rose 66 points or 1.1% to 6,097. Daily market turnover was HK$102.2bn.
S&P 500 ends lower, dragged down by declines in banks, retail stocks
The S&P 500 fell on Tuesday, weighed down by concerns over rising U.S. Treasury yields ahead of a key speech by Federal Reserve Chairman Jerome Powell later in the week, as well as losses in banks and retail stocks. The S&P 500 fell 0.3% to 4,387.55; the Dow Jones Industrial Average fell 174.86 points, or 0.5%, to 34,288.83. The tech-heavy Nasdaq Composite rose slightly to close at 13,505.87. Nvidia, which is due to report earnings on Wednesday, closed down 2.8%, erasing earlier gains. Standard & Poor's Global on Monday downgraded the credit ratings of several U.S. banks and downgraded their outlooks, saying their operating conditions were "difficult." Financials ended down 0.9 percent on Tuesday, making them the worst-performing sector in the S&P 500. KeyCorp and Comerica each fell 4.1 percent. Big bank JPMorgan Chase also fell 2%. Dick's Sporting Goods and Macy's , which were down 24 percent and 14 percent, respectively, were more cautious in their full-year forecasts, also sending the SPDR S&P Retail ETF lower. Dow component Nike fell nearly 1%.
All eyes on Jerome Powell's Jackson Hole speech this week
The Jackson Hole Economic Symposium for 2023 will be held from August 24 to 26. Although other central banks and economic leaders will also attend, the speech of Federal Reserve Chairman Powell will focus on the market. The U.S. economy had shown signs of slowing inflation ahead of the seminar, but it remained well below the Fed's 2 percent target. The strong labor market has yet to show significant signs of softening, leading to the current "higher for longer" narrative. Powell's upcoming speech at Jackson Hole could have important implications for the wider economic community and markets.
Hong Kong Stock Connect had a net inflow of HK$0.73bn on Tuesday, of which China Mobile (941) had the largest net inflow, reaching HK$0.65bn; followed by Meituan (3690). Tracker Fund (2800) recorded the largest net outflow at HK$2.88bn, followed by CSOP HS TECH (3033).
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