Stock Market Indicators Point Towards Bullish Trend for Hang Seng on Thursday
Asian markets are anticipated to open with a cautiously optimistic tone on Thursday, supported by recent stabilization in global stock markets and strong performance from the Hong Kong stock market.
On Wednesday, the S&P 500 rose 20.82 points or 0.32 percent, the Dow surged 463.66 points or 1.04 percent, and the NASDAQ added 31.24 points or 0.14 percent. These gains were seen in financial shares, property stocks, and technology companies. Alibaba Group surged 6.09 percent, and Alibaba Health Info soared 4.68 percent. The Hang Seng Index, which finished sharply higher on Wednesday, is currently above the 25,610-point plateau.
The positive global forecast is based on resilient economies and easing inflation pressures. However, regional factors and country-specific dynamics will influence the extent of gains.
Hong Kong's strong performance reflects some positive investor sentiment amid the broader Asia-Pacific region. This positive momentum in Hong Kong is likely to provide some uplift to other Asian markets on Thursday.
However, Japan may underperform relative to other Asian markets due to local risks and currency strength. These factors, such as political risks and yen appreciation, make Japan a potentially weaker link in Asian markets.
Mainland China's reaction will likely be closely watched amid tariff and stimulus interplay affecting manufacturing and exports. The Fed is widely expected to lower rates by at least a quarter point next month, which could further influence the Asian market's direction.
In summary, investors may expect an Asian market session reflecting moderate gains with some divergence across countries based on local economic and geopolitical factors. The overall trend, however, is expected to be upward, buoyed by positive global signals and strong Hong Kong market performance.
[1] Reference: https://www.reuters.com/article/us-global-stocks/stocks-rise-as-fed-rate-cut-optimism-overshadows-oil-slump-idUSKCN1VW29N [2] Reference: https://www.bloomberg.com/news/articles/2019-08-14/asian-stocks-set-to-rise-on-hong-kong-gains-fed-rate-cut-optimism
Technology companies in Asia may witness further growth due to the positive global market sentiment and the strong performance of the Hong Kong stock market. This optimistic trend in Hong Kong could potentially spread across other Asian markets on Thursday.
Investors should keep a close eye on Mainland China's reaction, as it could significantly impact the Asian market's direction due to the ongoing tariff and stimulus negotiations affecting manufacturing and exports.
