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Hangseng
Source: Newsmaker.id
The Hang Seng Index closed sharply higher in Friday's trading (Sept 4), rising approximately 1.75% after surging more than 2% during the morning session. This gain helped the Hong Kong market shake off pressure from the previous session and demonstrated a more solid performance compared to mainland Chinese stock markets, which ended the day lower.
Positive sentiment was driven primarily by a Wall Street rally in the previous trading session. US stock markets rose as Treasury yields eased and major technology stocks posted gains once again. Comments from Federal Reserve Governor Christopher Waller—hinting at the possibility of holding interest rates steady at the September meeting—also helped alleviate investor concerns regarding further monetary tightening.
The Hang Seng climbed to around 25,737 by the end of the morning session, a rise of 2.08% or over 524 points. Although some of these gains were trimmed toward the close, the index still managed to finish the session up 1.75%. This performance stood in contrast to the Shanghai Composite, which closed down about 0.3%, indicating relatively stronger investor interest in Hong Kong stocks during the day's trading.
Broad gains across Asian markets also provided support. Japan's Nikkei 225 and South Korea's Kospi moved into positive territory as investors eased their concerns about potential Fed rate hikes following Waller's remarks. Nevertheless, markets remain watchful of high oil prices stemming from the US-Iran conflict, which could potentially put renewed pressure on global inflation and shift expectations regarding monetary policy.
Investor attention is now turning to the US Nonfarm Payrolls report, due for release on Friday evening. Weaker-than-expected labor data could reinforce expectations that the Fed will hold interest rates steady, potentially sustaining positive sentiment for Asian stocks. Conversely, data significantly stronger than anticipated could reignite fears of rate hikes and trigger volatility when the Hong Kong market reopens.
Source: Newsmaker.id