KGI Asia Commentary
HSI rose 392 points on Tuesday
The Hang Seng Index rose 392 points or 2.6% to 15,353 on Tuesday. HSTECH rose 112 points or 3.7% to 3,147 and HSCEI rose 138 points or 2.8% to 5,140. Daily market turnover was HK$124.0bn.
S&P 500 closes at record high, tech stocks drive gains
The S&P 500 rose 0.3% to close at a record high of 4,864.11 points, and the Nasdaq rose 0.4% to close at a record high. The Dow Jones Industrial Average fell 95 points, or 0.3%. 3M Co. fell about 11%, leading industrial stocks lower, after the manufacturing giant reported lower-than-expected full-year results that overshadowed third-quarter results that topped Wall Street analysts. Lockheed Martin shares fell 4% after the company reported lower fourth-quarter sales, hurt by weakness in its rotary and mission systems business and missiles and fire control units. United Airlines rose more than 5% after better-than-expected fourth-quarter results, boosted by strong holiday-related travel demand. The strong quarterly results helped offset guidance for a larger-than-expected first-quarter loss due to the grounding of Boeing's 737 Max 9. General Electric shares fell 1% after the industrial conglomerate reported disappointing first-quarter results, although fourth-quarter earnings beat estimates and its jet engine business saw strong demand for parts and services. Elsewhere, telecom giant Verizon Communications rose more than 6% after the company unveiled a higher-than-expected annual earnings forecast range, saying it was "well-positioned" for growth in 2024.
Nasdaq China Golden Dragon Index rose 4.84% on Tuesday
It is believed that the Chinese government is considering launching a huge stimulus package to support the weak market. After that, investor sentiment toward China picked up. Wednesday's trading activity will provide markets with a better idea of whether the stimulus is short-lived or more permanent. The Nasdaq China Golden Dragon Index rose 4.84% on Tuesday.
Hong Kong Stock Connect had a net outflow of HK$5.32bn on Tuesday, of which HKEX (388) had the largest net inflow, reaching HK$0.10bn; followed by Wuxi Bio (2269). Tracker Fund (2800) recorded the largest net outflow at HK$2.63bn, followed by CSOP HS TECH (3033).
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