KGI Asia Commentary
HSI rose 218 points on Monday
The Hang Seng Index rose 218 points or 1.2% to 18,827 on Monday. HSTECH rose 65 points or 1.7% to 3,864 and HSCEI rose 82 points or 1.3% to 6,688. Daily market turnover was HK$118.8bn.
Stoxx 600 edged up 0.3%
UK and US markets were closed for public holidays. European stocks rose after European Central Bank officials made dovish comments. The Stoxx 600 closed 0.3% higher, with autos and rate-sensitive utility stocks the best performers, while banks and technology stocks edged lower. Meanwhile, investors awaited US inflation data this week to get a better idea of the market outlook. Looking ahead to this week, investors are paying attention to consumer confidence data released on Tuesday and the April personal income and spending report released on Friday, as well as PCE data. Several companies are also due to report earnings, with results such as Costco Wholesale and Ulta Beauty expected to provide a clearer picture of consumer conditions.
ECB policymaker Olli Rehn says time is ripe for rate cut next week
Olli Rehn, a member of the Governing Council of the European Central Bank and Governor of the Bank of Finland, stressed in a speech on Monday that inflation in the euro zone is falling in a “sustained way.” “Thanks to this disinflationary process, inflation is converging to our 2% target in a sustained way, and the time is thus ripe in June to ease the monetary policy stance and start cutting rates,” Rehn said in a speech published on the website of the Finnish central bank.
Hong Kong Stock Connect had a net inflow of HK4.42bn on Monday, of which China Mobile (941) had the largest net inflow, reaching HK$0.77bn; followed by Xiaomi (1810). Wuxi Bio (2269) recorded the largest net outflow at HK$0.21bn, followed by ICBC (1398).
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