News Maker 23

The Hang Seng Index enters Tuesday's trading (Oct 13) with the potential to extend its gains following a rise in the previous session. On Monday (Oct 12), Hong Kong's benchmark index closed 59.85 points or 0.25% higher at 24,271.20. However, the index exhibited significant volatility during the previous session, having touched a high of 24,455.95 before surrendering some of those gains toward the close.

The Hang Seng's rise in the previous session was driven primarily by banking sector stocks, while technology shares remained under pressure. The Hang Seng China Enterprises Index rose approximately 0.25% to 8,168.57, whereas the Hang Seng Tech Index fell about 0.67% to 4,169.57. This divergence in sectoral performance indicates that the recovery of the Hong Kong stock market has been uneven, with investors remaining selective in their positioning.

Externally, market attention is focused on Federal Reserve monetary policy developments, US Dollar movements, and China's economic growth outlook. Uncertainty regarding the trajectory of US interest rates could influence capital flows into Asian stock markets. Meanwhile, developments in China's stimulus policies and domestic demand conditions are key factors that could shape investor appetite for Hong Kong-listed Chinese stocks.

Heading into Tuesday's trading, the Hang Seng Index is expected to remain volatile, with the 24,000 mark serving as a key psychological level to watch. If positive sentiment holds, the index could retest the 24,400–24,500 range. Conversely, selling pressure in the technology sector and a strengthening US Dollar could limit the upside potential. Market participants are expected to continue monitoring global economic developments to determine the next trading direction. (CP)