KGI Asia Commentary
Hang Seng Index fell 13 points on Thursday
The Hang Seng Index closed at 17,444 points for the day, down 13 points or 0.1%. The Hang Seng Technology Index reported at 3,487 points, up 4 points or 0.1%. The HSCEI Index fell 28 points, or 0.5%, to 6,105 points. The market turnover was HK$84.9billion.
S&P 500 slides ahead of jobs report on fresh economic worries
U.S. stocks fell on Thursday as investors sold risk assets and worries about the U.S. economic outlook grew ahead of Friday's jobs report. The S&P 500 fell 0.3% to close at 5,503.41 points; the Dow Jones Industrial Average fell 219.22 points, or 0.54%, to close at 40,755.75 points. The Nasdaq rose 0.25% to close at 17,127.66 points, after rising as much as 1.2% during the session. Verizon shares fell slightly after it agreed to acquire Frontier Communications for $20 billion. The move is expected to help the telecom giant grow its fiber optic network to compete with rivals including AT&T. Shares of U.S. Steel rose more than 2%, recouping some of its losses after Wednesday's sharp decline. There are reports that US President Joe Biden will block Japan's Nippon Steel's $14.9 billion acquisition of the US steelmaker due to national security concerns. Hewlett Packard Enterprise fell 6% as its results and fourth-quarter growth were overshadowed by lower margins as mix shifted to servers. Shares of JetBlue Airways Corp rose more than 6% as it raised its third-quarter performance forecast. The company expects third-quarter revenue to grow by -2.5% to 1% from the same period last year. This compares with expectations that the revenue ratio would fall by 5.5% to 1.5%. Tesla shares rose 4% after the electric car maker said it would launch advanced driver assistance systems in Europe and China in the first quarter of 2025.
ADP employment data falls short of expectations, focus turns to Friday's payrolls data
US private payrolls was lower than expected in August, raising concerns about the health of the economy. According to data, private payrolls increased by 99,000 in August from a downwardly revised 111,000 in July. This is the weakest month since January 2021. Economists had expected 145,000. The market is now turning its focus to employment data to be released on Friday.
Hong Kong Stock Connect had a net outflow of HK1.59bn on Thursday of which ICBC (1398) had the largest net inflow, reaching HK$0.25bn; followed by Kuaishou (1024). Tracker Fund (2800) recorded the largest net outflow at HK$1.61bn, followed by CSOP HS TECH (3033).
Wen Kit Kenny is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to:https://apps.sfc.hk/publicregWeb/indi/AJF244/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
The materials contained herein are provided by KGI Asia Limited ("KGI") for information only. While such materials are based on or derived from sources believed to be reliable, KGI makes no representation or warranty (express or implied) as to their accuracy or reliability. Neither the information nor the opinions expressed herein constitute, or are to be construed as, an offer or invitation or solicitation of an offer to buy or sell any securities or investments. KGI and its officers, employees, agents and affiliates may have interests in the securities or investments covered herein and accept no liability whatsoever for any loss or consequence whatsoever (whether direct or indirect) resulting from any use of or reliance by you on such materials.