KGI Asia Commentary
Hang Seng Index rose 239 points on Thursday
The Hang Seng Index rose 239 points or 1.5% to 16,742 on Thursday. HSTECH rose 58 points or 1.8% to 3,410 and HSCEI rose 115 points or 2.1% to 5,758. Daily market turnover was HK$100.0bn.
S&P 500 closes at new highs, driven by Nvidia
The S&P 500 surged to a new high on Thursday after chip giant Nvidia reported much stronger-than-expected quarterly results, boosting the broader market and technology sectors. The S&P 500 rose 2.11% to close at 5,087.03 points, its largest one-day gain since January 2023. The Nasdaq rose 2.96% to close at 16,041.62 points, its largest one-day gain since February 2023. The Dow Jones Industrial Average soared 456.87 points, or 1.18%, surpassing 39,000 points for the first time in history, and closed at a new high of 39,069.11 points. Chip company Nvidia said its total revenue rose 265% year-on-year, driven by a booming artificial intelligence business, and the company's shares soared 16.4% to a record high. Nvidia has become one of the largest companies in the United States by market capitalization. The company also expects strong revenue growth again this quarter, despite earlier expectations for a sharp increase. Other technology stocks were also higher. Shares of Facebook parent company Meta and Amazon rose about 3.9% and 3.5% respectively. Microsoft and Netflix both rose more than 2%. Elsewhere, Moderna reported a surprising fourth-quarter profit, and its stock price closed up nearly 14%. Etsy shares fell more than 8% after the e-commerce company reported mixed earnings and weaker guidance, highlighting a tough economic backdrop and competition in the e-commerce space. Rivian Automotive shares fell nearly 26% after the company reported slower demand. Royal Caribbean Cruises shares rose more than 7% after the company raised its full-year revenue forecast, saying "demand and pricing environments" in 2024 were encouraging.
U.S. Treasury yields rise on strong job market
U.S. Treasury yields moved sharply higher after fresh signs of strength in the job market. Initial Jobless Claims for Feb/17 in United States is 201K, lower than the previous value of 213K. The forecast was 218K. Federal Reserve Vice Chairman Philip Jefferson said on Thursday he was "cautiously optimistic" about the central bank's ability to keep inflation at its 2% target. "If the economy evolves broadly as expected, it will likely be appropriate to begin dialing back our policy restraint later this year," he added.
Hong Kong Stock Connect had a net inflow of HK4.77bn on Thursday, of which CNOOC (883) had the largest net inflow, reaching HK$0.77bn; followed by Meituan (3690). Trad Chi Med (570) recorded the largest net outflow at HK$0.75bn, followed by SMIC (981).
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