HONG KONG: The Hong Kong stock market has alternated between positive and negative finishes through the last seven trading days since the end of the two-day losing streak in which it had fallen almost 200 points or 0.7 percent. The Hang Seng Index now rests just above the 29,135-point plateau although it figures to head south again on Friday.
The global forecast for the Asian markets is weak, thanks mainly to concerns over U.S. tax reform – although a bump in crude oil prices should limit the downside. The European and U.S. markets were down and the Asian markets are expected to open in similar fashion.
The hang Seng finished modestly higher on Thursday following gains from the financials, insurance companies and oil producers. Among the actives, China Life surged 2.23 percent, while Cathay Pacific Airways plummeted 1.42 percent, Ping An Insurance soared 3.67 percent, CNOOC spiked 1.46 percent, Li & Fung tumbled 1.34 percent, Industrial and Commercial Bank of China climbed 1.12 percent, BOC Hong Kong jumped 0.81 percent, Sands China skidded 0.78 percent, Galaxy Entertainment advanced 0.71 percent, Lenovo Group added 0.44 percent, Sino Land gained 0.28 percent, Hong Kong Gas & China lost 0.26 percent and China Petroleum and Chemical (Sinopec) was up 0.17 percent. The lead from Wall Street is negative as stocks climbed off their worst levels but still ended Thursday trade firmly in the red – pulling back from record closing highs in the previous session.
The Dow shed 101.42 points or 0.43 percent to 23,461.94, while the NASDAQ lost 39.06 points or 0.58 percent to 6,750.05 and the S&P 500 fell 9.76 points or 0.38 percent to 2,584.62. The weakness came as traders reacted to reports of the Senate version of tax reform legislation. The proposed bill has several key differences with the House version, including a delay in cutting in the corporate tax rate.
In economic news, the Labor Department reported a bigger than expected increase in initial jobless claims in the week ended November 4. Also, the Commerce Department said wholesale inventories rose 0.3 percent in September, matching estimates. Crude oil futures continued to rise Thursday despite reports tempering expectation for further supply cuts from OPEC. WTI light sweet crude oil rose 35 cents to $57.16 a barrel after Wednesday’s decline.
Closer to home, Hong Kong will provide Q3 numbers for gross domestic product later today; in the three months prior, GDP expanded 1.0 percent on quarter and 3.8 percent on year.
