KGI Asia Commentary
HSI rose 128 points on Thursday
The Hang Seng Index rose 128 points or 0.8% to 17,230 on Thursday. HSTECH rose 61 points or 1.6% to 3,813 and HSCEI rose 51 points or 0.9% to 5,911. Daily market turnover was HK$71.1bn.
U.S. stocks close higher as treasury yield fell
The Dow closed sharply higher on Thursday as U.S. treasury yield continued to fall sharply ahead of the release of non-farm payrolls data on Friday, and the market bet on the Federal Reserve ending its interest rate hikes. The Dow Jones Industrial Average rose 564 points, or 1.7%; the S&P 500 rose 1.9%, and the Nasdaq rose 1.8%. Coffee chain Starbucks Corporation shares rose more than 9% after the company announced fourth-quarter financial results. Both revenue and profit exceeded Wall Street expectations, mainly due to its growth in the Chinese market. Meanwhile, Moderna Inc reported a larger-than-expected third-quarter loss as demand for its COVID-19 vaccine fell, resulting in a loss of $3.1 billion in unused vaccines, causing the company's stock price to fall 6%. As demand for artificial intelligence products continues to grow, Palantir Technologies reported better-than-expected third-quarter results and issued stronger-than-expected full-year guidance. The company's shares closed up 20%. Meanwhile, Roku Inc. and PayPal Holdings Inc. reported better-than-expected quarterly results, sending their shares up more than 30% and 6%, respectively.
US weekly Initial Jobless Claims rise to 217K vs. 210K expected
Initial Jobless Claims in the week ending October 27 in United States is 217K, higher than the previous value of 212K. The forecast was 210K. Continuing claims rose by 35,000 in the week ending October 21 to 1.81 million, above market expectations of 1.8 million, which is the highest level since May. The nonfarm payrolls report, out on Friday, is expected to show 188,000 new jobs were created in October, down from 336,000 in September. Slowing job growth will ease wage and inflation pressures, which is expected to increase bets that the Federal Reserve is unlikely to raise interest rates again.
Hong Kong Stock Connect had a net inflow of HK$0.94bn on Thursday, of which Lenovo (992) had the largest net inflow, reaching HK$0.21bn; followed by CSPC Pharma (1093). Tencent (700) recorded the largest net outflow at HK$0.37bn, followed by ICBC (1398).
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