KGI Asia Commentary
Hang Seng Index fell 207 points on Tuesday
The Hang Seng Index fell 207 points or 1.2% to 16,529 on Tuesday. HSTECH fell 65 points or 1.8% to 3,528 and HSCEI fell 67 points or 1.2% to 5,780. Daily market turnover was HK$90.6bn.
The Dow closed up more than 300 points on Tuesday
U.S. stocks rose on Tuesday as the Federal Reserve began its two-day policy meeting. The Dow Jones Industrial Average rose 320.33 points to close at 39,110.76 points, an increase of 0.83%. The S&P 500 rose 0.56% to close at 5,178.51 points, a record high. Meanwhile, the Nasdaq rose 0.39% to close at 16,166.79 points. Nvidia shares rose about 1.1%, recovering from early losses as investors assessed news of its first GTC conference. Nvidia CEO Jensen Huang announced the latest artificial intelligence chip Blackwell, which he said is much more powerful than Nvidia's chips and can support a variety of artificial intelligence operations. Shares of Super Micro Computer, a major supplier of Nvidia's artificial intelligence servers, fell about 9% after news of a share offering. Energy stocks led the market higher, supported by oil prices rising to nearly four-month highs ahead of new crude oil inventory data due later this week. The American Petroleum Institute will release its estimate of crude oil inventories later in the session, ahead of a government oil report expected a day later. APA Inc., Baker Hughes Inc. and Devon Energy Inc. were among the top gainers.
Fed meeting kicks off
The Federal Reserve's two-day meeting begins on Tuesday, but markets expect rates to be unchanged. However, a recent spate of worrying inflation reports has investors worried that the Fed may signal that interest rates will remain higher for longer than expected. U.S. Treasury yields fell despite concerns that the Federal Reserve may no longer dovish. On the economic front, housing activity continues to recover, with housing starts and building permits unexpectedly rise.
Hong Kong Stock Connect had a net inflow of HK6.92bn on Tuesday, of which Tencent (700) had the largest net inflow, reaching HK$0.80bn; followed by BOC (3988). Kuaishou (1024) recorded the largest net outflow at HK$0.06bn, followed by Meituan (3690).
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