KGI Asia Commentary
Hang Seng Index rose 132 points on Wednesday
The Hang Seng Index rose 132 points or 0.8% to 15,879 on Wednesday. HSTECH rose 70 points or 2.3% to 3,197 and HSCEI rose 79 points or 1.5% to 5,386. Daily market turnover was HK$57.0bn.
Dow rebounds as buyers snap up tech stocks
The Dow closed higher on Wednesday as investors bought dips, led by gains in technology stocks, a day after a sell-off in the sector after stronger-than-expected U.S. inflation data. The S&P 500 rose 0.96% to close at 5,000.62 points, and the Nasdaq rose 1.3% to close at 15,859.15 points. The Dow Jones Industrial Average rose 151.52 points, or 0.4%, to close at 38,424.27 points. Shares of Lyft rose 35% after the ride-hailing company reported better-than-expected fourth-quarter earnings. Airbnb's most recent quarter revenue beat expectations. But the travel accommodation app showed bookings slowed in the quarter as competition intensified, sending its shares down more than 1%. The company said the tough year-over-year base will impact its growth rate in first-quarter booked nights compared to the same period last year. Kraft Heinz reported fourth-quarter net revenue that missed expectations as the packaged foods group faced headwinds as recent price increases weighed on demand. The company's shares fell more than 5%. Nvidia shares rose nearly 2.5%, briefly giving the chipmaker a market value greater than Alphabet. Robinhood Markets Platform shares rose 13% after the trading platform reported better-than-expected quarterly results, driven by higher crypto and options trading.
Fed speakers says fight against inflation remains on track
Just a day earlier, data on Tuesday showed inflation slowed less than expected, denting investor hopes for an early rate cut from the Federal Reserve. Federal Reserve Vice Chair Michael Barr said on Wednesday that the Fed is confident that inflation is heading toward 2%, but the January consumer price index released on Tuesday reminded officials that the road to falling inflation will likely be "bumpy." Federal Reserve Bank of Chicago President Austan Goolsbee said on Wednesday that an unexpected rise in inflation does not mean the Fed is not meeting its goal of controlling inflation, and rate cuts could get underway even if inflation is slightly higher.
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