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JD.com, AIA, Longfor lead Hong Kong stock rebound as market’s 5-week sell-off deemed excessive
The Hang Seng Index added 0.2 per cent to 17,221.86 at 10.10am local time to climb out of a 10-month low. The Tech Index rose 0.5 per cent. Financial markets in mainland China are closed this week for the “golden week” holiday.
JD.com jumped 1.5 per cent to HK$111.90 and NetEase advanced 1.8 per cent to HK$155.50, while AIA Group gained 0.8 per cent to HK$65.90. Macau casino concessionaire Galaxy Entertainment added 1.2 per cent to HK$45.80 and developer Longfor Group advanced 0.3 per cent to HK$12.78.
The 14-day relative strength index levels for Hang Seng Index and the Tech Index are both near 37, according to Bloomberg data, approaching the 30-point threshold that traders consider as a signal for a turnaround. The readings for JD.com, Longfor and Galaxy are at 31 to 33.
“We still foresee a bumpy stock market uptrend in the fourth quarter,” Patrick Pan, China equity strategist at Daiwa Capital Market, said in a note to clients. Strong ‘golden week’ spending data, additional stimulus measures and a return of foreign capital could give the market a lift, he added.
After 99% slump from peak, Hong Kong’s small-cap stocks bid to stay relevant
After 99% slump from peak, Hong Kong’s small-cap stocks bid to stay relevant
Hong Kong’s benchmark stock index has slipped 3.5 per cent so far this week, adding to losses in the preceding four weeks. While China’s economic data showed the slowdown has stabilised, investors remained unconvinced that a major rebound is in store. Appetite for risk has also waned amid worries about higher-for-longer interest rates, after yields on US government bonds surged to a 16-year high this week.
Major Asian markets strengthened, tracking an overnight rally on Wall Street. Australia’s S&P/ASX 200 added 0.2 per cent, while the Nikkei 225 Index in Japan and South Korea’s Kospi both gained 0.6 per cent.
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