Hang Seng Flat; US CPI Fails to Boost Sentiment
The Hang Seng Index traded relatively flat on Thursday (August 13), holding around the 25,400 level. Investors remained cautious following a decline in the previous session, even though US inflation data—showing more contained price pressures—raised hopes for looser Federal Reserve policies.
Asian market sentiment generally improved after the US CPI revealed relatively benign inflation pressures. The data eased concerns regarding near-term interest rate hikes and provided support for most risk assets across the region.
However, gains in the Hong Kong market remained limited as investors continued to monitor pressure on technology stocks and geopolitical uncertainties. These conditions made market participants hesitant to take large positions, despite the improvement in global sentiment.
The technology sector took center stage as the market digested Tencent's second-quarter earnings report and developments in China's artificial intelligence industry. Movements in tech stocks were mixed: Z.AI rose 2%, MiniMax gained 1.2%, and SMIC added 2%.
Conversely, Tencent fell approximately 2.6% and AIA weakened 0.3%, capping the index's gains. Investors are also awaiting earnings reports from other companies to gain a clearer picture of business conditions and consumer spending in China.
Newsmaker Analysis: Softer US inflation data is generally a positive factor for growth and technology stocks. However, the Hang Seng still requires a stronger domestic catalyst to sustain its upward momentum. Should Chinese tech stocks begin to recover and geopolitical sentiment improve, the index could potentially retest the 25,500–25,700 range. (asd)*
Source: Newsmaker.id
