[ET Net News Agency, 10 August 2026] The US announced last Friday that non-farm payrolls unexpectedly fell by 23,000 in July, significantly missing the expected increase of 83,000, while the unemployment rate also fell to 4.1%, lower than the expected 4.2%. The data immediately weakened rate-hike expectations, with interest rate futures showing that the mainstream prediction for the Federal Reserve's policy meeting in September shifted from a 0.25 percentage point rate hike to holding rates steady, with the probability of maintaining unchanged interest rates in September rising to over 55%. Last Friday, the three major US stock indices performed well, with the HSI closing the half-day session at 25,853, up 185 points or 0.7%, breaking back above the 250-day moving average (approximately 25,738), commonly known as the bull-bear line, with main board turnover approaching HKD 140.8 billion. The Hang Seng China Enterprises Index stood at 8,587, up 56 points or 0.7%. The Hang Seng TECH Index stood at 4,876, up 17 points or 0.4%.
"Weak Hong Kong stock turnover; watch heavyweights in tech earnings"
The unexpected contraction in US non-farm employment in July dampened market expectations of rate hikes, with interest rate futures showing that the probability of keeping interest rates unchanged in September rose to over 56%. Wan Kong Shing, the Chief Investment Officer of iFAST Global Markets, told ET Net News Agency that today's market rebound was mainly driven by easing rate hike expectations, coupled with relatively stable oil prices and a weaker US Dollar Index, which is conducive to capital flows and has a positive impact on Hong Kong stocks. However, Wan believes that the recent upward momentum of Hong Kong stocks is limited, based on recent weak HSI turnover and the fact that southbound capital has shown net outflows over the past two weeks. The fact that the market has not fallen under these conditions reflects the resilience of Hong Kong stocks, and he expects Hong Kong stocks to trade sideways in the 25,600 to 26,600 point range in the near term.
Additionally, heavy-weight tech stocks such as Tencent (00700) and JD.com (09618) will announce their earnings this week. Wan stated that attention should be paid to whether tech stocks can monetize their businesses in areas like AI and their capital expenditure levels. However, he believes that the overall recent performance of ATMXJ has been decent enough to support the broader market, and earnings are expected to bring a positive impact to the market. In particular, Alibaba's (09988) investments in its AI model "Qwen" and Moonshot AI reflect its increased commitment to the AI industry; coupled with generally favourable earnings from overseas US tech companies, the market also holds certain aspirations for Mainland China's tech enterprises.
"Winning by volume - AI infrastructure demand drives Delton"
Delton (01989) released its interim results, showing total operating revenue for the second quarter of HKD 2.474 billion, a year-on-year increase of 89.2%, and a second-quarter net profit of HKD 563 million, a year-on-year increase of 1.24 times. Notably, Delton's accounts receivable also recorded a year-on-year increase of 87.43% during the period. Delton peaked at HKD 136 today, with an increase of up to 8%, but closed the half-day session down over 0.32% at HKD 125.4.
Wan stated that Delton has solid fundamentals. As AI development requires substantial infrastructure support, the power and circuit board industries remain valued by the market. Wan also noted that Mainland China's AI hardware development is currently relatively weak compared to overseas counterparts, and developing AI requires "winning by volume," which in turn increases the demand for AI infrastructure and strengthens the competitiveness of related enterprises. It is therefore reasonable for Delton to see an increase in accounts receivable alongside its business growth.
In terms of technical charts, Wan indicated that Delton has seen a relatively large recent increase, and suggested waiting for the share price to pull back to around HKD 110 before making deployments, with a short-term target of HKD 138, while considering a stop-loss if it falls below around HKD 108.
"Weak Hong Kong stock turnover; watch heavyweights in tech earnings"
The unexpected contraction in US non-farm employment in July dampened market expectations of rate hikes, with interest rate futures showing that the probability of keeping interest rates unchanged in September rose to over 56%. Wan Kong Shing, the Chief Investment Officer of iFAST Global Markets, told ET Net News Agency that today's market rebound was mainly driven by easing rate hike expectations, coupled with relatively stable oil prices and a weaker US Dollar Index, which is conducive to capital flows and has a positive impact on Hong Kong stocks. However, Wan believes that the recent upward momentum of Hong Kong stocks is limited, based on recent weak HSI turnover and the fact that southbound capital has shown net outflows over the past two weeks. The fact that the market has not fallen under these conditions reflects the resilience of Hong Kong stocks, and he expects Hong Kong stocks to trade sideways in the 25,600 to 26,600 point range in the near term.
Additionally, heavy-weight tech stocks such as Tencent (00700) and JD.com (09618) will announce their earnings this week. Wan stated that attention should be paid to whether tech stocks can monetize their businesses in areas like AI and their capital expenditure levels. However, he believes that the overall recent performance of ATMXJ has been decent enough to support the broader market, and earnings are expected to bring a positive impact to the market. In particular, Alibaba's (09988) investments in its AI model "Qwen" and Moonshot AI reflect its increased commitment to the AI industry; coupled with generally favourable earnings from overseas US tech companies, the market also holds certain aspirations for Mainland China's tech enterprises.
"Winning by volume - AI infrastructure demand drives Delton"
Delton (01989) released its interim results, showing total operating revenue for the second quarter of HKD 2.474 billion, a year-on-year increase of 89.2%, and a second-quarter net profit of HKD 563 million, a year-on-year increase of 1.24 times. Notably, Delton's accounts receivable also recorded a year-on-year increase of 87.43% during the period. Delton peaked at HKD 136 today, with an increase of up to 8%, but closed the half-day session down over 0.32% at HKD 125.4.
Wan stated that Delton has solid fundamentals. As AI development requires substantial infrastructure support, the power and circuit board industries remain valued by the market. Wan also noted that Mainland China's AI hardware development is currently relatively weak compared to overseas counterparts, and developing AI requires "winning by volume," which in turn increases the demand for AI infrastructure and strengthens the competitiveness of related enterprises. It is therefore reasonable for Delton to see an increase in accounts receivable alongside its business growth.
In terms of technical charts, Wan indicated that Delton has seen a relatively large recent increase, and suggested waiting for the share price to pull back to around HKD 110 before making deployments, with a short-term target of HKD 138, while considering a stop-loss if it falls below around HKD 108.
