KGI Asia Commentary
Hang Seng Index rose 218 points on Monday
HSI rose 218 pts or 1.3% to 17,635. HSTI rose 74 pts or 2.1% to 3,610. HSCEI rose 88 pts or 1.4% to 6,253. Market turnover reached $93.4 billion.
S&P 500 has best day since June, major tech stocks rebound
The S&P 500 jumped on Monday as Nvidia led a rebound in technology stocks after recent weakness as investors look ahead to quarterly earnings reports from big tech stocks this week. The S&P 500 rose 1.1%, its largest one-day gain since June 5; the Nasdaq rose 1.6%, and the Dow Jones Industrial Average rose 128 points, or 0.3%. Nvidia's shares rose nearly 5% after a Reuters report said it was developing a B20 version of Blackwell GPUs specifically for the Chinese market, which would comply with U.S. export controls. Nvidia helped push the entire technology sector higher and triggered downside buying after recent volatility in the sector. Investors are looking forward to earnings reports from major technology companies such as Alphabet and Tesla on Tuesday. Driven by strong technology and analytics businesses, IQVIA announced quarterly financial results and its stock price rose more than 9%. Shares of Verizon Communications fell 6% after the telecommunications giant reported lower-than-expected second-quarter revenue, even as it added more wireless subscribers than expected in the second quarter. Away from the earnings report, CrowdStrike closed down 14% after several Wall Street firms, including Scotiabank, BTIG and Guggenheim, downgraded the cybersecurity company.
Investors await important corporate earnings reports
As corporate earnings season kicks off, investors will be paying close attention to reports on Tuesday from well-known companies such as General Motors, Coca-Cola, Comcast, UPS and Spotify. Technology giants Alphabet and Tesla, as well as toy maker Mattel, are expected to report earnings after the close. Traders will also look to Tuesday's economic data on existing home sales.
Hong Kong Stock Connect had a net outflow of HK3.69bn on Monday of which Tracker Fund (2800) had the largest net inflow, reaching HK$1.29bn; followed by Tencent (700). Meituan (3690) recorded the largest net outflow at HK$0.32n, followed by Xiaomi (1810).
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