KGI Asia Commentary
Hang Seng Index fell 206 points on Wednesday
The Hang Seng Index fell 206 points or 1.2% to 16,725 on Wednesday. HSTECH fell 82 points or 2.3% to 3,460
Dow continues losing streak amid geopolitical tensions
The Dow Jones Industrial Average fell for a fourth straight session on Thursday, giving up intraday gains amid rising geopolitical tensions and hawkish comments from Federal Reserve officials ahead of a key monthly jobs report on Friday. The Dow Jones Industrial Average fell 530.16 points, or 1.35%, to close at 38,596.98 points. The Dow had its worst trading day since March 2023 and fell for a fourth consecutive session. The S&P 500 fell 1.23% to close at 5,147.21 points. The Nasdaq index, which is dominated by technology stocks, fell 1.40% to close at 16,049.08 points. Apple, Amazon, Microsoft and Meta Platforms gave up most of their gains, with the latter retreating from all-time highs despite positive comments from Jefferies. Clothing retailer Levi's shares rose more than 13% after the company reported stronger-than-expected quarterly results and raised its annual earnings forecast. The results reflect the company's ongoing push for a direct-to-consumer approach, which is expected to continue to boost performance.
Initial jobless claims jump to highest level since January
Data released earlier on Thursday showed that the number of first-time jobless claims in the United States rose more than expected last week, with the number of claims rising by 9,000 to a seasonally adjusted 221,000 in the week ended March 30. This was higher than the 214,000 expected.
Fed spokesman reiterates caution on rate cuts
Crude oil prices jumped midday, in line with Thursday's swing in stocks. WTI crude oil prices topped $86 a barrel, reaching their highest level since October last year, raising concerns that energy prices could re-accelerate inflation. Minneapolis Fed President Neel Kashkari joined recent Fed spokesmen's conservative views on policy, saying Thursday afternoon that if inflation remains high, he wants to Know if the Fed should cut interest rates. Influenced by Kashkari's speech, the 10-year government bond yield rebounded from daily lows.
Hong Kong Stock Connect had a net inflow of HK5.12bn on Thursday, of which Xiaomi (1810) had the largest net inflow, reaching HK$0.87bn; followed by China Mobile (941). Tracker Fund (2800) recorded the largest net outflow at HK$0.47bn, followed by XPeng (9868).
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