KGI Asia Commentary
Hang Seng Index fell 253 points on Wednesday
The Hang Seng Index fell 253 points or 1.5% to 16,536 on Wednesday. HSTECH fell 76 points or 2.2% to 3,426 and HSCEI fell 118 points or 2.0% to 5,688. Daily market turnover was HK$107.0bn.
S&P 500 slips, tech stocks struggle ahead of key inflation data
U.S. stocks fell on Wednesday as investors anticipated a key inflation report later this week. The S&P 500 fell 0.17% to close at 5,069.76 points. The Nasdaq fell 0.55% to 15,947.74 points. The Dow Jones Industrial Average fell 23.39 points, or 0.06%, to close at 38,949.02 points, falling for the third consecutive day. Beyond Meat shares surged more than 30% after the company reported better-than-expected quarterly revenue and forecast improved profit margins in the second half of the year. Shares of retailer TJX rose 0.6% after the company reported higher-than-expected sales growth in the fourth quarter but more modest forecasts for the future. Some on Wall Street believe the company's forecasts are too conservative and may be better than expected. E-commerce site eBay rose about 8% on stronger-than-expected earnings. Cryptocurrency stocks surged including Marathon Digital Holdings Inc. and Coinbase Global Inc., with the latter hitting a new 52-week high and Bitcoin prices jumping above $60,000.
U.S. fourth-quarter GDP revised slightly down
The U.S. Bureau of Economic Analysis announced that the GDP in the fourth quarter of last year was revised downward to 3.2%, slightly lower than the previously announced 3.3% and lower than the 4.9% in the previous quarter. The weaker economic growth data comes a day before the release of the PCE price index, the Fed's preferred inflation gauge that influences its expectations for interest rates.
Hong Kong Stock Connect had a net inflow of HK1.4bn on Wednesday, of which China Mobile (941) had the largest net inflow, reaching HK$0.32bn; followed by Li Auto (2015). Tencent (700) recorded the largest net outflow at HK$0.57bn, followed by Meituan (3690).
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