KGI Asia Commentary
HSI fell 2 points on Thursday
The Hang Seng Index fell 2 points or 0.0% to 18,326 on Thursday. HSTECH rose 32 points or 0.8% to 4,158 and HSCEI rose 19 points or 0.3% to 6,292. Daily market turnover was HK$112.9bn.
Dow drops nearly 300 points as yields soar
Stocks fell for a third straight session on Thursday as investors digested the latest round of earnings and economic data, while interest rates jumped to new highs. The Dow Jones Industrial Average fell 290.91 points, or 0.84%, to end at 34,474.83. The S&P 500 fell 0.77% to close at 4,370.36. The Nasdaq Composite Index fell 1.17% to close at 13316.93 points. The 10-year U.S. Treasury yield hit its highest level since October 2022 on Thursday. Interest rates continued to move higher after the minutes of the Federal Reserve's July meeting released on Wednesday showed the central bank remains concerned about upside risks to inflation. Shares fell more than 2% even as Walmart reported better-than-expected earnings and revenue for its fiscal second quarter. The company also raised its full-year forecast and highlighted strength in grocery and online sales. On a positive note, computer networking company Cisco Systems (CISCO) posted a better-than-expected quarterly earnings report, sending shares up more than 3%.
US weekly Initial Jobless Claims decline to 239K vs. 240K expected
Weekly data from the Labor Department on Thursday showed initial jobless claims of 239,000 for the week ended Aug. 12. The figure followed last week's 250,000 (revised from 248,000) and was slightly below the consensus estimate of 240,000. The resilience of the labor market raises the risk that the Federal Reserve may raise interest rates again.
Hong Kong Stock Connect had a net inflow of HK$9.9bn on Thursday, of which Tracker Fund (2800) had the largest net inflow, reaching HK$0.65bn; followed by Tencent (700). Easy Buy (1797) recorded the largest net outflow at HK$39mn.
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