Hong Kong Market May Test Resistance At 24,000


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(RTTNews.com) - The Hong Kong stock market bounced higher again on Wednesday, one session after it had snapped the two-day winning streak in which it had gathered almost 360 points or 1.6 percent. The Hang Seng now rests just beneath the 23,670-point plateau, and the market has a firm lead again on Thursday.

The global forecast for the Asian markets is upbeat after the Federal Reserve left interest rates unchanged on Wednesday, while a spike in the price of crude oil adds to the positive sentiment. The European and U.S. bourses were up and the Asian markets figure to follow suit.

The Hang Seng finished modestly higher on Wednesday following gains from the financial shares and oil companies.

Among the actives, Sino Land skidded 1.70 percent, while China Petroleum and Chemical (Sinopec) surged 1.51 percent, CNOOC added 1.19 percent, Galaxy Entertainment perked 1.37 percent, China Resources Land advanced 1.32 percent, Industrial and Commercial Bank of China climbed 1.21 percent, China Life gathered 0.95 percent, Lenovo Group picked up 0.77 percent, Bank of China tumbled 0.74 percent and HSBC collected 0.76 percent.

The lead from Wall Street is broadly positive as stocks moved sharply higher on Wednesday in response to the Fed's monetary policy announcement.

The Dow advanced 163.74 points or 0.9 percent to 18,293.70, while the NASDAQ jumped 53.83 points or 1 percent to 5,295.18 and the S&P 500 surged 23.36 points or 1.1 percent to 2,163.12.

The rally came after the Fed left interest rates unchanged as expected but signaled that a rate hike is likely before the end of the year. The Fed said the case for an increase in the federal funds rate has strengthened but that the central bank decided to wait for additional data.

Earlier in the day, traders reacted to the Bank of Japan's decision to control short-term and long-term interest rates and expand the monetary base until inflation exceeds 2 percent. The BoJ also will continue applying a negative interest rate of 0.1 percent.

Substantial strength was visible among energy stocks, which moved sharply higher as the price of crude oil for November delivery jumped $1.29 to $45.34 a barrel.

Closer to home, Hong Kong will release August figures for inflation and Q2 data for current account later today. Inflation was up 2.3 percent on year in July, while the current account surplus was 17.55 billion Hong Kong dollars in Q1.

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