KGI Asia Commentary
Hang Seng Index rose 41 points on Tuesday
The Hang Seng Index rose 41 points or 0.2% to 18,444 on Tuesday. HSTECH rose 12 points or 0.3% to 3,796 and HSCEI rose 22 points or 0.3% to 6,554. Daily market turnover was HK$116.2bn.
Dow closes higher as job openings drop sharply, boosting hopes of rate cut
The Dow closed higher on Tuesday as job openings fell to a three-year low, signaling slowing economic growth but also boosting hopes the Federal Reserve will cut interest rates this year. The Dow Jones Industrial Average rose 140 points, or 0.4%, the S&P 500 rose 0.1% and the Nasdaq Composite rose 0.2%. Intel Corp. unveiled a slew of artificial intelligence chips, a day after similar announcements from Nvidia Corp. and Advanced Micro Devices Inc., as the chipmaker looks to close a yawning gap with rivals. But some on Wall Street believe Intel may need further upgrades to meaningfully compete with rivals. Tesla's stock price closed lower after Reuters reported on Tuesday, citing data from the China Passenger Car Association, that Tesla's sales of electric vehicles manufactured in China fell 6.6% year-on-year to 72,573 units in May. British retailer Bath & Body Works Inc.'s weak second-quarter guidance overshadowed better-than-expected first-quarter results, sending the company's shares down nearly 13%. OPEC+ is set to increase supply later this year, and falling oil prices continue to weigh on energy stocks. Among the energy sectors, Halliburton Co. (HAL), Baker Hughes Co. (BKR) and Exxon Mobil Corp. (XOM) were among the biggest decliners.
Job openings fall to lowest point in three years
U.S. job openings fell to their lowest level in more than three years in April, consistent with a gradual slowdown in the labor market. The Job Openings and Labor Turnover Survey (JOLTS) released by the Bureau of Labor Statistics on Tuesday showed that the number of available positions fell to 8.06 million from a downwardly revised 8.36 million last month. The figure was lower than all estimates by economists surveyed by Bloomberg.
Hong Kong Stock Connect had a net inflow of HK8.82bn on Wednesday, of which China Mobile (941) had the largest net inflow, reaching HK$1.0bn; followed by Yankuang (1171). MMG (1208) recorded the largest net outflow at HK$0.17bn, followed by Li Auto (2015).
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