KGI Asia Commentary
Hang Seng Index fell 5 points on Monday
The Hang Seng Index fell 5 points, or 0.03%, to close at 17,936 points; the HSCEI Index fell 1 point, or 0.02%, to close at 6,373 points; the Hang Seng Technology Index rose 1 point, or 0.05%, to close at 3,709 points. The market turnover was HK$96.324 bn.
Dow ends four-session losing streak
U.S. stocks closed higher on Monday. The Dow rose 188.94 points, or 0.49%, to 38778.10 points; the Nasdaq rose 168.14 points, or 0.95%, to 17857.02 points; the S&P 500 rose 41.63 points, or 0.77%, to 5473.23 point. The Dow ended its previous four consecutive sessions of losses.
In terms of economic data, New York Empire State's manufacturing index shrank less than expected in June, with a value of -6. Market expectations and the previous value were -12.5 and -15.6 respectively. The degree of contraction was the lowest since March this year. In addition, investors can pay attention to the S&P Global Manufacturing and Services PMI indices to be released this Friday. Current market expectations are 51 and 53.4 respectively, both of which are expected to be narrowed compared to May.
China's economic growth momentum remains unstable
Yesterday, the National Bureau of Statistics announced that retail sales were better than expected, but the performance of fixed asset investment and industrial added value were worse than market expectations. The growth momentum of China's economy is still unstable. In addition, the sales GFA of new homes still recorded a 20% decrease year-on-year. The housing measure implemented by the central government awaiting to show it effect. The national surveyed unemployment rate continued to remain at 5%, the same as in April. The overall economy is showing mixed results, and the needs of policy support to promote the economy remains.
The net inflow of Hong Kong Stock Connect on Monday was HK$3.78 billion. Tencent (0700) had the largest inflow, reaching HK$440 million; followed by Bank of China (3988). Brilliance China Auto (1114) recorded the largest net outflow of HK$240 million, followed by Meituan (3690).
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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