KGI Asia Commentary
Hang Seng Index rose 249 points on Thursday
The Hang Seng Index rose 249 points or 1.3% to 19,948 on Thursday. HSTECH rose 20 points or 0.5% to 3,856 and HSCEI rose 129 points or 2.0% to 6,718. Daily market turnover was HK$105.28bn.
Stocks end lower for fourth straight day on renewed worries about banks
The Dow ended sharply lower on Thursday as the debacle at Pacific Western Bank sparked a fresh sell-off in regional bank stocks, weighing on investor sentiment. The Dow Jones Industrial Average fell 286.50 points, or 0.86%, to 33,127.74. The S&P 500 fell 0.72% to close at 4,061.22. The Nasdaq Composite fell 0.49% to close at 11,966.40. Regional lenders, including Western Alliance, First Horizon and PacWest, may be on the verge of failure, raising fresh concerns about banking problems. Shares of PacWest Bancorp fell more than 50% on a report that the regional lender was exploring strategic options, including a possible sale. The bank confirmed it was reviewing all options, saying it had not seen any unusual outflows of deposits. Meanwhile, big tech stocks were mixed ahead of Apple Inc's quarterly results after the market close, with many eager to see how iPhone sales fared amid slowing global economic growth. Meanwhile, Qualcomm shares fell more than 5% as better-than-expected quarterly results were overshadowed by guidance that fell short of Wall Street expectations. Paramount slashed its dividend and missed earnings estimates, sending its stock plunging more than 20%.
U.S. jobless claims come in at 242K vs. 240K expected
The U.S. Labor Department said on Thursday that new jobless claims were higher than the previous week's revised 229,000. The number of people applying for unemployment benefits is one of the best barometers of whether the economy is getting better or worse. New jobless claims showed that the labor market was cooling. The number of continuing claims for unemployment benefits fell by 38,000 to 1.805 million in the week ended April 22, missing expectations of 1.865 million.
Hong Kong Stock Connect had a net inflow of HK$2.81bn on Thursday, of which China Mobile (941) had the largest net inflow, reaching HK$0.43bn; followed by CNOOC (883). HSCEI ETF (2828) recorded the largest net outflow at HK$0.2bn, followed by Hua Hong ABC (1288).
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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