Hang Seng Rises, Bolstered by Tech Stocks
The Hong Kong stock market kicked off the week with gains. The Hang Seng Index rose approximately 0.8%, or 200 points, to reach the 25,873 level during Monday's trading (August 10), tracking positive sentiment across Asian markets.
The rally was driven by US labor market data that came in weaker than expected. This prompted markets to scale back expectations for a near-term Federal Reserve interest rate hike, while also putting downward pressure on bond yields and the US dollar.
Sentiment was further bolstered by inflation data from China. Annual inflation slowed to 0.5% in July from 1.0% in June—a six-month low. This figure opens the door for looser policy measures to support economic growth.
Investors were also keeping a close watch on Guotai Junan International ahead of the resumption of its stock trading, following its parent company's proposal for a privatization plan valued at HK$28.6 billion. This move is part of an ongoing wave of consolidation within China's brokerage sector.
Technology and growth stocks provided market support. Tencent rose 0.7%, AIA gained 0.8%, and Wuxi Biologics surged 4.5%, while Xiaomi and Genscript Biotech also posted gains.
Newsmaker Analysis: The Hang Seng continues to find support in tempered expectations for US interest rate hikes and the prospect of stimulus from China. However, geopolitical tensions and persistently high oil prices remain risk factors. As long as global sentiment remains positive, the index has the potential to maintain its upward momentum. (asd)
Source: Newsmaker.id
