KGI Asia Commentary
HSI fell 40 points on Thursday
The Hang Seng Index fell 40 points or 0.2% to 17,044 on Thursday. HSTECH rose 11 points or 0.3% to 3,712 and HSCEI rose 5 points or 0.1% to 5,859. Daily market turnover was HK$80.8bn.
The Nasdaq fell 1.7% on Thursday, falling further into correction territory
The Nasdaq fell further into correction territory on Thursday, affected by a meta-led plunge in technology stocks. The technology-heavy Nasdaq fell 1.76% and closed below its 200-day moving average at 12,595.61 points. The S&P 500 fell 1.18% to close at 4,137.23 points, and the Dow Jones Industrial Average fell 251.63 points, or 0.76%, to close at 32,784.30 points. Meta Platform shares fell more than 3% after the company said advertising demand was weak so far in the fourth quarter. Concerns about slowing economic growth overshadowed positive news that third-quarter revenue and profit exceeded analysts' expectations. The social media giant attributed some of the weakness to the conflict between Israel and Hamas, which has impacted ad spending in the Middle East. International Business Machines Corp. (IBM)'s third-quarter results exceeded Wall Street expectations. The company's investments in artificial intelligence appear to be paying off, with continued growth in its software business supporting a more than 5% rise in the company's stock price. United Parcel Service's stock price fell more than 5% after the company lowered its financial forecast. It reported mixed third-quarter financial results and lower-than-expected revenue. Meanwhile, toymaker Hasbro Inc. reported third-quarter results that fell short of analysts' expectations and cut its annual revenue forecast ahead of the crucial holiday season, sending its shares down more than 11%.
U.S. GDP grew at 4.9% in the third quarter, better than expected
The U.S. economy grew faster than expected in the third quarter, driven by strong consumers, despite rising interest rates, persistent inflationary pressures, and a variety of other domestic and global headwinds. The U.S. Department of Commerce announced on Thursday that GDP grew at a seasonally adjusted annual rate of 4.9% from July to September, higher than the unrevised 2.1% in the second quarter. GDP is a measure of all goods and services produced in the United States, and the third-quarter growth largely reflected increases in consumer spending and inventory investment.
Hong Kong Stock Connect had a net inflow of HK$2.2bn on Thursday, of which Li Ning (2331) had the largest net inflow, reaching HK$0.78bn; followed by Meituan (3690). Tencent (700) recorded the largest net outflow at HK$0.31bn, followed by Kuaishou(1024).
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