KGI Asia Commentary
HSI rose 91 points on Friday
The Hang Seng Index opened 275 points higher last Friday to 20,584 point, and rose 91 points or 0.4% to 20,400 point; the China Enterprises Index rose 46 points or 0.7% to 6,969 point; the Hang Seng Technology Index rose 33 points or 0.8%, reported at 4,304 point. The market turnover was HK$140.6 bn. News of the spin-off of JD.com (9618) drove the share price up 5.4% to HK$172. NAYUKI (2150) narrowed its loss to Rmb470 mn, and its stock price rose 16.9% to HK$8.49.
US PCE index continues to fall
The latest U.S. personal consumption index in February fell slightly by 0.1% month-on-month, which was lower than the 1.5% in January. In addition, the final value of the University of Michigan’s consumer confidence index in March was 62, which was lower than the initial value and market expectations. It reflects that the Federal Reserve will make more progress in fighting inflation in the face of a slowdown in consumption in the future. In addition, one of the key economic data heavily weighted by Fed, the core personal consumption expenditure deflator (PCE) for February rose 5% year-on-year, lower than the expected 5.1%, and rose 0.3% month-on-month, which was flat with expectations. 0.6%, although the PCE data fell, there is still uncertainty about the next interest rate meeting.
Last Friday, the Dow rose 415 points, or 1.26%, to 33,274; the Nasdaq rose 208 points, or 1.7%, to 12,222; the S&P 500 rose 58 points, or 1.44%, to 33,274. 4,109 points.
China PMI beats expectations
The National Bureau of Statistics publicly released the official manufacturing and non-manufacturing PMI data in March. The former was 51.9 and the latter was 58.2, both of which were better than market expectations. The non-manufacturing industry continued to recover quickly. Look closely to the detail, business activities are expected to maintain a high level of prosperity above 60 for three consecutive months, reflecting that the market is optimistic about the future recovery.
Hong Kong Stock Connect had a net inflow of HK$669 mn last Friday, of which Tencent (700) had the largest net inflow of HK$1.05 bn; followed by China Mobile (941). Meituan (3690) recorded the largest net outflow of HK$542 mn, followed by Tracker Fund (2800).
Wen Kit Kenny is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to:https://apps.sfc.hk/publicregWeb/indi/AJF244/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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