KGI Asia Commentary
HSI rose 102 points on Monday
The Hang Seng Index continued to rise for ten consecutive trading days. The HSI opened 12 points higher and fell 9 points in at the mid-day. The index rebounded significantly in the afternoon, rising 102 points or 0.6%, to close at 18,578; the HSCEI rose 25 points, or 0.4%, to close at 6,572; the HSTECH rose 36 points, or 0.9%, to close at 4,007. The total daily turnover of the market was HK$144.49bn. Chinese technology stocks generally performed well today, with share prices rising between 0.4% and 2.3%. Rate cut expectation boosted gold stocks, with Shandong Gold (1787) rising 4.9%.
Visitors to Macao continue to grow during the Workers' Day
During the Mainland’s Labor Day holiday that just passed, the number of visitors to Macau continued to grow. The total number of visitors to Macau was approximately 605,000, a year-on-year increase of 22.7%. Compared with 795,000 passengers in 2019, the total number of passengers this year has recovered by approximately 76.1%. The average hotel occupancy rate during the holiday period was 89.2%, up 4.5 percentage points from 2023, and still far from the pre-covid level of 96.6%.
All three major U.S. stock indexes recorded gains. The Nasdaq rose 192 points, or 1.2%, to 16,349; the S&P 500 rose 52 points, or 1.0%, to 5,180; and the DJIA rose 176 points, or 0.5%, to close at 38,852.
Fed member says rate cut will eventually come
New York Fed President John Williams, who has a vote on the FOMC this year, attended the event and said that the Fed will eventually cut interest rates, but the time is not determined. The inflation figure may be up and down in unpredictable ways. Williams' comments are believed to be to reduce the market's over-sensitivity to inflation or employment numbers. He also expected that U.S. GDP growth will slow down this year, mainly due to more cautious household spending.
Hong Kong Stock Connect recorded a net inflow of HK$5.09bn on Monday. Among them, Tracker Fund (2800) had the largest inflow, reaching HK$5.52bn; followed by Bank of China (3988). Meituan (3690) recorded the largest net outflow of HK$960mn, followed by CNOOC (0883).
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