KGI Asia Commentary
Hang Seng Index rose 17 points on Tuesday
The Hang Seng Index rose 17 points or 0.1% to 18,089 on Tuesday. HSTECH rose 34 points or 0.9% to 3,689 and HSCEI rose 12 points or 0.2% to 6,477. Daily market turnover was HK$95.1bn.
Tech stocks rise, S&P 500 higher for second straight day
The S&P 500 ended slightly higher on Wednesday as Amazon shares soared to a record high, pushing technology stocks higher ahead of key inflation data. The S&P 500 index closed up 8.60 points, or 0.16%, at 5,477.90 points. The Dow Jones Industrial Average rose 15.64 points to close at 39127.80 points, an increase of 0.04%. At the same time, the Nasdaq index, which is dominated by technology stocks, rose 87.50 points to close at 17,805.16 points, an increase of 0.49%. Amazon's stock price rose 3.9%, leading the Nasdaq index. On Wednesday, the company's shares hit an all-time high and its market capitalization topped $2 trillion for the first time, joining Nvidia, Apple, Alphabet and Microsoft in reaching the milestone. Investors awaited May PCE figure due on Friday. The Fed watches the indicator closely, with investors hoping it will lower interest rates later this year if price gains continue to slow. Rivian Automotive shares rose 23% after forming a joint venture with Volkswagen. Southwest Airlines shares fell 0.21% due to uneven travel demand. The airline said it now expects operating income per available seat mile to fall 4% to 4.5% in the second quarter, compared with its previous forecast of a decline of 1.5% to 3.5%. Shares of packaged food giant General Mills fell more than 4% after the company forecast lower-than-expected annual profits and reported a larger-than-expected drop in quarterly sales due to lower demand for snack bars and pet food and rising input costs.
All 31 banks passed the stress test
The Federal Reserve said on Wednesday that all 31 major banks have passed this year's stress tests. The Fed said in a statement that 31 banks were able to absorb losses while maintaining more than the minimum required capital levels. The stress test assumes the unemployment rate surges to 10%, commercial real estate values plummet by 40%, and house prices fall by 36%.
Hong Kong Stock Connect had a net inflow of HK3.80bn on Wednesday, of which Tracker Fund (2800) had the largest net inflow, reaching HK$1.77bn; followed by HSCEI ETF (2828). CNOOC (883) recorded the largest net outflow at HK$0.26bn, followed by Shenhua (1088).
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