KGI Asia Commentary
Hang Seng Index fell 125 points on Thursday
The Hang Seng Index fell 125 points or 0.6% to 19,925 on Thursday. HSTECH fell 58 points or 1.5% to 3,930 and HSCEI fell 77 points or 1.2% to 6,649. Daily market turnover was HK$102.9bn.
Bank stocks under pressure, S&P 500 closes down 1.8%
U.S. stocks tumbled on Thursday, with banks and other financial stocks selling off while investors are waiting for Friday's key jobs report, which could influence the direction of interest rates. The S&P 500 fell 1.85% to 3,918.32; the Dow Jones Industrial Average fell 543.54 points, or 1.66%, to 32,254.86. The Nasdaq Composite fell 2.05% to close at 11,338.35. Shares in Sweden's SVB Financial Group fell 60% after the lender announced a $2.25 billion stake sale after posting a $1.8 billion net loss and releasing guidance for the year and first quarter that were hit by higher interest rates. Elsewhere, Bank of America, Wells Fargo and JPMorgan Chase closed down more than 5%. Crypto bank Silvergate Capital plunged more than 40% during the day as it considered scaling back its operations after posting a $1 billion loss in the fourth quarter. In addition, technology stocks also fell, and the Meta platform fell more than 2%. Meanwhile, General Electric, which rose 8%, reaffirmed its guidance for 2023, expecting adjusted EPS of $1.60 to $2.00, delivering high-single-digit organic revenue growth. GM shares fell nearly 5% during the day, as the company said the voluntary separation program would result in a $1.5 billion loss.
U.S. initial jobless claims rise sharply, but remain at record lows
U.S. jobless claims jumped last week as numbers rose in New York and California, but remained at record lows as demand for labor outstripped job seekers. Initial claims for state unemployment benefits rose by 21,000 to a seasonally adjusted 211,000 last week, the Labor Department said on Thursday. Data on Thursday showed initial jobless claims rose by the most since October. Still, if Friday's jobs report shows further signs of a tight labor market, it could cement expectations that the Fed will pick up the pace of rate hikes at its March meeting.
Hong Kong Stock Connect had a net inflow of HK$0.61bn on Thursday, of which China Mobile (941) had the largest net inflow, reaching HK$0.43bn; followed by Tencent (700). Tracker Fund (2800) recorded the largest net outflow at HK$2.66bn, followed by Li Motor (2015).
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