KGI Asia Commentary
Hang Seng Index rose 407 points on Wednesday
The Hang Seng Index rose 407 points or 2.1% to 20,192 on Wednesday. HSTECH rose 102 points or 2.5% to 4,246 and HSCEI rose 149 points or 2.2% to 6,878. Daily market turnover was HK$146.4bn.
Stocks close higher on Wednesday, led by tech stocks
The Dow ended higher on Wednesday, boosted by a surge in Micron technology shares and signs of further easing in banking concerns. The Dow Jones Industrial Average rose 323.35 points, or 1%, to 32,717.60. The S&P 500 rose 1.4 percent to 4,027.81; the Nasdaq Composite rose nearly 1.8 percent to 11,926.24. Micron Technology Inc rose more than 7 percent, boosting chip stocks and tech stocks in general after the company reported better-than-expected revenue and positive comments that chip demand had bottomed out offset a weaker-than-expected quarterly result. Influence. Other chip stocks were also in favor, with Intel, Lam Research and Marvell Technology sharply higher. Bank stocks also rose as fears of contagion continued to ease, with regional lenders including First Republic Bank, Lincoln National and Zions Bancorporation leading gains. In other financial reports, shares of Lululemon sportswear company rose more than 12%, the company reported quarterly results that beat Wall Street expectations, mainly driven by strong demand and inventory reduction.
Powell discusses FDIC limits with House Republicans
On Wednesday, Fed Chairman Jerome Powell held a private meeting with US Republican Representatives, the Republican Study Committee. Powell commented on the Fed's most recent dot plot and said they expect one more rate hike this year. Powell also told Republican that Congress should reassess limits on the size of bank deposits guaranteed by the federal government. The FDIC currently insures depositors at a cap of $250,000 per depositor, but the collapse of Silicon Valley Bank and Signature Bank this month has raised questions about the need for higher insurance limits.
Hong Kong Stock Connect had a net inflow of HK$3.06bn on Wednesday, of which Tencent (700) had the largest net inflow, reaching HK$1.19bn; followed by Meituan (3690). Tracker Fund (2800) recorded the largest net outflow at HK$0.46bn, followed by HSCEI ETF (2828).
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