Daily Investment Strategy
Hang Seng Index rose 795 points on Thursday
The Hang Seng Index closed at 19,924 points for the day, rose 795 points or 4.2%. The Hang Seng Technology Index reported at 4,209 points, up 285 points or 7.3%. The HSCEI Index rose 321 points, or 4.7%, to 7,086 points. The market turnover was HK$302.8billion.
S&P 500 closes higher, hits new high
U.S. stocks rose on Thursday after the U.S. released upbeat economic data, with the S&P 500 hitting a new high. The S&P index rose 0.40% to 5,745.37 points. The index hit a record intraday high and closed at a record high, driven by gains in shares of Micron Technology. The Nasdaq rose 0.60% to close at 18,190.29 points. The Dow Jones Industrial Average rose 260.36 points to close at 42175.11 points, an increase of 0.62%. Micron closed up 14.7% after issuing a strong quarterly financial forecast. Micron's fourth-quarter results also exceeded analysts' expectations. The VanEck Semiconductor ETF (SMH) rose 2.9%. But Super Micro Computer, a maker of artificial intelligence servers, failed to join the rally, sending its shares down more than 12% after the Wall Street Journal reported that the U.S. Department of Justice was investigating the company. Shares of Southwest Airlines rose more than 5% after the airline raised its capacity earnings forecast for the current quarter and announced a new $2.5 billion stock buyback program.
Strong economic data supports optimism for soft landing
A slew of latest data supported a solid economy and eased concerns that the Federal Reserve could aggressively cut interest rates as the economy slows. Weekly jobless claims fell more than expected, indicating a stable job market. Durable goods orders were flat in August, compared with economists' expectations for a decline. Additionally, the final figure for second-quarter GDP was unrevised at a strong 3%.
Hong Kong Stock Connect had a net inflow of HK5.9bn on Thursday of which Alibaba (9988) had the largest net inflow, reaching HK$5.86bn; followed by Meituan (3690). CNOON (883) recorded the largest net outflow at HK$1.1bn, followed by China Mobile (941).
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