KGI Asia Commentary
Hang Seng Index fell 51 points on Wednesday
The Hang Seng Index fell 51 points or 0.3% to 17,471 on Wednesday. HSTECH flat at 3,600 and HSCEI fell 24 points or 0.4% to 6,251. Daily market turnover was HK$102.34bn.
S&P 500 closes above 5,600 for first time
The S&P 500 hit a new high on Wednesday, surpassing the 5,600 mark for the first time, as a surge in semiconductor stocks led the market higher. The broader market index rose 1.02% to close at 5,633.91 points, rising for the seventh consecutive day. The Nasdaq rose 1.18%, also hitting a record high, closing at 18,647.45 points. This is the 37th record closing for the S&P 500 Index in 2024, and the 27th record closing for the Nasdaq Index, which is dominated by technology stocks. The Dow Jones Industrial Average rose 429.39 points to close at 39,721.36 points, an increase of 1.09%. Chip stocks were among the session's biggest winners. TSMC's April-June revenue exceeded Wall Street expectations, sending the company's shares up 3.5%. Fellow chip company Qualcomm rose 0.8%, while Broadcom gained about 0.7%. Nvidia climbed 2.7%. Investors are watching consumer price index (cpi) inflation data due to be released on Thursday. Economists expect the CPI to rise 0.1% quarterly and 3.1% annually. Core CPI, which excludes energy and food prices, is expected to rise 0.2% from the previous quarter and 3.4% from the same period last year.
Powell says Fed will cut rates when ready, regardless of political calendar
Federal Reserve Chair Jerome Powell said on Wednesday they will not cut interest rates until they have gained even greater confidence that inflation is headed back to the central bank's 2% target. The U.S. central bank will make interest rate decisions "when and as" they are needed, pushing back on a suggestion that a September rate cut could be seen as a political act ahead of the fall presidential election. Powell said recent data was encouraging. He emphasized that the risks to the job market are now on the same level as the risks of high inflation and that the Fed intends to achieve its goals of price stability and full employment simultaneously.
Hong Kong Stock Connect had a net inflow of HK0.86bn on Wednesday, of which China Mobile (941) had the largest net inflow, reaching HK$0.21bn; followed by CCB (939).CNOOC (883) recorded the largest net outflow at HK$0.31bn, followed by Shenhua (1088).
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