KGI Asia Commentary
Hang Seng Index rose 7 points on Thursday
The Hang Seng Index rose 7 points or 0.04% to 16,621 on Thursday. HSTECH fell 16 points or 0.44% to 3,710 and HSCEI rose 7 points or 0.13% to 5,619. Daily market turnover was HK$69.5bn.
Dow closes up more than 300 points
The Dow closed higher on Thursday as technology stocks rose after chipmaker Micron reported better-than-expected quarterly results, with investors buying into falling stocks after a sell-off a day earlier. The Dow Jones Industrial Average rose 322.35 points to 37404.35 points, an increase of 0.87%. The Nasdaq rose 1.26% to close at 14,963.87 points. The S&P 500 rose 1.03% to 4,746.75. Memory chip maker Micron Technology was the best performer, with its shares rising 8.6% after the company reported guidance for the current quarter that beat expectations. Chip stocks generally rose, with Intel and AMD rising 2.9% and 3.3% respectively. Shares of software maker Salesforce rose more than 2% after Morgan Stanley upgraded the stock to outperform, saying its risk-reward profile was relatively favorable. Morgan Stanley added that while Salesforce's positioning in generative artificial intelligence is solid and improving, its stock price still trades below its large software peers on a growth-adjusted GAAP earnings basis, presenting "compelling risk-reward ahead".
Q3 GDP revised down; manufacturing activity slows; key inflation report eyed
On the economic front, the U.S. third-quarter gross domestic product (GDP) was finally revised to grow by 4.9%, weaker than the previously announced 5.2%, while the number of first-time jobless claims for the week ended December 16 increased by 2,000 to 205,000. That was below expectations of 214,000. The Philadelphia Fed said Thursday that the manufacturing index fell to -10.5 from -5.9 in August, and manufacturing activity continued to shrink. Friday will see the release of the core Personal Consumption Expenditures price index, the Fed's most closely watched inflation gauge that could show whether inflation has slowed enough for the central bank to begin easing policy next year.
Hong Kong Stock Connect had a net inflow of HK$2.43bn on Thursday, of which Tracker Fund (2800) had the largest net inflow, reaching HK$0.68bn; followed by CSOP HS TECH (3033). Tracker Fund (2800) recorded the largest net outflow at HK$0.20bn, followed by CNOOC (883).
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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