KGI Asia Commentary
Hang Seng Index fell 347 points on Monday
The Hang Seng Index closed at 14,961 points for the day, down 347 points or 2.3%. The Hang Seng Technology Index reported at 3,035 points, down 94 points or 3.0%. The H-Share Index fell 125 points, or 2.4%, to 5,001 points. The market turnover was HK$ 112.17 bn.
Dow rises more than 100 points, closing above 38,000 for first time ever
The S&P 500 and the Dow closed at record highs on Monday, with the latter closing above 38,000 for the first time, as technology stocks continued their gains ahead of a busy week of corporate earnings and key economic data. The Dow Jones Industrial Average rose 138 points to close at a record 38,001.81 points, an increase of 0.36%; the S&P 500 Index rose 0.2% to close at 4,850.43 points, closing at a new high for the second consecutive trading day. The Nadak rose 0.4%. Fueling the rally, large technology stocks were mostly higher as investors awaited earnings reports from some of the biggest companies, including Netflix on Tuesday and Tesla on Wednesday, as well as 3M and Intel. Department store chain Macy's Inc closed 3% higher after the company rejected a $5.8 billion private offer from Arkhouse Management and Brigade Capital Management.
Key growth, inflation data to be released soon
Important economic data will be released this week, which may affect the U.S. Federal Reserve's interest rate decision next week. The latest data on the economy's growth trajectory is due on Wednesday, with fourth-quarter GDP data to be released. Following growth of 4.9% in the previous quarter, GDP growth is expected to reach 2.0% in the fourth quarter. Meanwhile, key U.S. inflation data on Thursday will provide new insights into progress towards the Federal Reserve's 2% target, with many now changing expectations for a rate cut in March. The chances of the Federal Reserve cutting interest rates in March have dropped to 50% from less than 80% a week ago, after a series of improving retail sales and consumer confidence data.
Hong Kong Stock Connect had a net inflow of HK$0.65bn on Monday, of which Meituan (3690) had the largest net inflow, reaching HK$0.35bn; followed by CM Bank (3968). Tencent (700) recorded the largest net outflow at HK$0.21bn, followed by China Mobile (941).
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