KGI Asia Commentary
Hang Seng Index rose 354 points on Friday
The Hang Seng Index rose 354 points or 2.1% to 17,398 on Friday. HSTECH rose 93 points or 2.5% to 3,806 and HSCEI rose 119 points or 2.0% to 5,979. Daily market turnover was HK$91.4bn.
S&P 500 index fell into technical correction zone on Friday
Recession fears triggered a fresh round of selling that dragged the Dow lower on Friday and pushed the S&P 500 into correction territory. The Dow Jones Industrial Average fell 1%, or 337 points, while the Nasdaq rose 0.4%. The S&P 500 fell 0.4% to end in technical correction zone at 4,118.93, with technology stocks giving back some gains despite gains in shares of Amazon and Intel. Shares of technology giant Amazon rose more than 6% after the company reported third-quarter earnings that beat Wall Street expectations. Meanwhile, chipmaker Intel Corp rose more than 9% as the company drew praise from Wall Street for satisfactory third-quarter results and an increase in profit forecasts. Shares of Exxon Mobil and Chevron fell nearly 2% and 7% respectively after reporting disappointing quarterly results, dragging the entire energy sector lower. ExxonMobil's third-quarter revenue and profit fell short of Wall Street expectations, weighed down by weakness in its upstream operations, including its exploration and production stages. Meanwhile, Chevron reported lower-than-expected earnings due to lower margins at its refining operations.
Inflation continues to ease, but consumer spending rises more than expected
The core price consumer expenditure index, a measure of inflation closely watched by the Federal Reserve, slowed to an annual increase of 3.7%, in line with expectations, down from 3.9% in the previous month. While ongoing signs of slowing inflation will provide the Fed with further evidence that its restrictive monetary policy measures are having the desired effect, last month's stronger-than-expected pace of consumer spending could disrupt the Fed's policy decision. Consumer spending rose 0.7%, beating expectations for a 0.5% increase as households increased purchases of motor vehicles and traveled.
Hong Kong Stock Connect had a net inflow of HK$2.2bn on Thursday, of which Meituan (3690) had the largest net inflow, reaching HK$0.26bn; followed by SMIC (981). China Mobile (941) recorded the largest net outflow at HK$0.18bn, 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.
The materials contained herein are provided by KGI Asia Limited ("KGI") for information only. While such materials are based on or derived from sources believed to be reliable, KGI makes no representation or warranty (express or implied) as to their accuracy or reliability. Neither the information nor the opinions expressed herein constitute, or are to be construed as, an offer or invitation or solicitation of an offer to buy or sell any securities or investments. KGI and its officers, employees, agents and affiliates may have interests in the securities or investments covered herein and accept no liability whatsoever for any loss or consequence whatsoever (whether direct or indirect) resulting from any use of or reliance by you on such materials.