KGI Asia Commentary
HSI rose 234 points on Monday
The Hang Seng Index rose 272 points after opening 63 points higher. The HSI closed at 16,587 yesterday, up 234 points or 1.4%. The HSTECH reported at 3,482, up 96 points or 2.9%. The HSCEI rose 92 points, or 1.6%, to 5,748. The market turnover was HK$92.95bn. Tencent (0700) and NetEase (9999) participated in the 2024 Game Developers Conference, and their stock prices rose 3.2% and 1.4% respectively. JD.com (9618) continued to perform well today, rising 6.4% today. Longfor (0960) forecast a full-year core profit drop of 45% to 50%. Its stock price turned from falling to rising today and closed up 1.3%.
U.S. three-year Treasury bond bid rates rose
The U.S. employment report released last week was mixed. The bond market is focusing on the February CPI figure to be released. Investors in the interest rate futures market were still optimistic about interest rate cuts starting in June, but the primary bond market may present another pattern. The U.S. Treasury Department auctioned $56bn of three-year Treasury bonds, with a bid rate of 4.256%, down from 4.169% last month, and a bid-ask ratio of 2.60 (previously 2.58).
The three major U.S. stock indexes all had mixed trends. The DJIA rose 46 points, or 0.12%, to close at 38,768; the S&P 500 fell 5 points, or 0.11%, to close at 5,117; the Nasdaq composite fell 65 points, or 0.41%, to close at 16,019.
The market is awaiting the results of Japan's upcoming wage increased
After Japan has temporarily emerged from a technical recession and the final GDP value in the 4Q23 has been significantly revised up, the market is awaiting to the upcoming wage growth results this year, because it is related to Japan's economic trends this year and the direction of monetary policy. Japan’s Economic Minister believed that the result of this year’s salary increase will determine whether Japan’s economy has entered an turning point, and the Bank of Japan’s negative interest rate policy also believes that it will depend on whether the salary report released by Rengo is satisfactory.
Hong Kong Stock Connect saw a net inflow of HK$3.0bn on Monday, in which Bank of China (3988) had the largest inflow, recorded HK$600mn; followed by Li Auto (2015). CSOP HS TECH (3033) recorded the largest net outflow of HK$230mn; followed by China Construction Bank (0939).
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