KGI Asia Commentary
Hang Seng Index rose 93 points on Thursday
The Hang Seng Index closed at 17,786 points for the day, rose 93 points or 0.5%. The Hang Seng Technology Index reported at 3,461 points, rose 15 points or 0.5%. The HSCEI Index rose 21 points, or 0.3%, to 6,247 points. The market turnover was HK$108.1 billion.
Dow rises 200 points, hits new closing high
The Dow climbed to a record on Thursday as Wall Street attempted to rebound from a sharp sell-off earlier this month. The Dow Jones Industrial Average rose 143 points, or 0.6%, the S&P 500 rose 0.1%, and the Nasdaq Composite fell 0.2%. Nvidia shares fell 6.4%, dragging down the S&P 500 and Nasdaq. The artificial intelligence chip maker beat revenue and profit estimates in its fiscal second quarter and on Wednesday afternoon issued an upbeat sales outlook for the current quarter. Discount retailer Dollar General fell 30% as it cut its annual same-store sales forecast and consumers cut back on spending on its high-margin merchandise. Business software maker Salesforce reported strong second-quarter results that beat expectations and raised its full-year profit forecast, but the company's shares still fell 1%. Cybersecurity company CrowdStrike reported better-than-expected second-quarter results, sending its shares up nearly 3%, although the company lowered its revenue and profit forecasts after last month's global network outage. At the same time, Affirm Holdings reported optimistic first-quarter results, and its stock price rose 32%. The company's fourth-quarter results exceeded Wall Street expectations.
2Q GDP growth unexpectedly revised higher, easing fears of hard landing
US second-quarter gross domestic product was revised higher to 3% growth from an initial 2.8% rate. The increase primarily reflected increases in consumer spending. Meanwhile, the initial jobless claims for the week ending Aug. 24 stood at 231,000, marginally lower than economists' estimates of 232,000.
Hong Kong Stock Connect had a net inflow of HK1.83bn on Thursday of which Li Auto (2015) had the largest net inflow, reaching HK$0.75bn; followed by China Mobile (941). Tracker Fund (2800) recorded the largest net outflow at HK$2.2bn, followed by CNOOC (883).
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