ET Net News Agency (Oct 5) - The U.S. economy added 29,000 non-farm jobs in September, far below the market expectation of 84,000, significantly weakening the expectation of a rate hike at the end of the month. Interest rate futures indicate the probability of a rate hike by the end of the month has dropped to about 22%. With northbound trading suspended during China's National Day holiday, the HSI had previously fallen below 24,000. Despite positive U.S. data, the index dropped over 100 points at one point this morning, hitting a new low since July 8. Tech stocks were generally weak, but Alibaba (09988) turned upward mid-session, supporting the market from further declines. The HSI closed the morning session at 23,952, down 20 points or less than 0.1%. The Hang Seng China Enterprises Index stood at 8,030, up less than 1 point. The Hang Seng Tech Index rose 11 points or 0.3% to 4,169. Notably, Stock Connect trading remained suspended for the second day, with morning session turnover on the main board shrinking to HK$54.6 billion. Thin trading reduced market support, increasing market risks.
Ongoing rumors that the UK government plans to impose a windfall tax on banks continue to affect bank stocks. HSBC (00005) fell 1.14% to HK$147.8, hitting a three-month low during the session. Standard Chartered (02888) dropped 1.74% to HK$225.8. Among peers, Bank of China Hong Kong (02388) declined 0.69% to HK$50.35.
Some tech stocks were soft in early trading. Xiaomi (01810) fell 1.73% to HK$23.82, JD.com (09618) dropped 1.65% to HK$101.2, Meituan (03690) declined 0.21% to HK$70.05, and Kuaishou (01024) fell 0.68% to HK$29.38. However, Alibaba (09988) reversed to rise 0.96% to HK$105.4, while Tencent (00700) gained 0.33% to HK$422.6.
NVIDIA's market capitalization approached a record high of nearly $6 trillion, driving AI hardware stocks higher in a sluggish market. Lenovo Group (00992) led the blue chips with a 4.9% rise to HK$36. Hua Hong Semiconductor (01347) gained 3.6% to HK$109.3. Among non-blue chips, Kingboard Laminates (01888) surged 9.31% to HK$54, Shenghong Technology (02476) rose 5.38% to HK$205.6, Montage Technology (06809) gained 3.94% to HK$301, and Zhongji Xuzhuang (03308) rose 3.64% to HK$1,111.
MTR Corporation (00066) was fined HK$2.25 billion due to delays in high-speed rail construction, causing its share price to fall 2.02% to HK$31.04, breaking below the 250-day moving average for the first time in a year and a half. Budweiser APAC (01876) announced restructuring costs and expected provisions would impact last quarter's profit, with its share price down 1.94% at midday to HK$5.565.
Despite cooling expectations for a U.S. rate hike this month, property stocks continued to fall. Henderson Land (00012) dropped 1.85% to HK$25.5, Sun Hung Kai Properties (00016) fell 1.32% to HK$104.6, Cheung Kong (01113) declined 1.35% to HK$45.28, and New World Development (00017), despite rumors of a new white knight investment plan, still fell 1.8% to HK$5.715.
The top three most actively traded HSI stocks were Tencent, Alibaba, and AIA (01299). AIA was quoted at HK$68.5, down 1%. The top three most actively traded stocks in the China Enterprises Index and the Tech Index were Tencent, Alibaba, and Lenovo Group. (ey)
Ongoing rumors that the UK government plans to impose a windfall tax on banks continue to affect bank stocks. HSBC (00005) fell 1.14% to HK$147.8, hitting a three-month low during the session. Standard Chartered (02888) dropped 1.74% to HK$225.8. Among peers, Bank of China Hong Kong (02388) declined 0.69% to HK$50.35.
Some tech stocks were soft in early trading. Xiaomi (01810) fell 1.73% to HK$23.82, JD.com (09618) dropped 1.65% to HK$101.2, Meituan (03690) declined 0.21% to HK$70.05, and Kuaishou (01024) fell 0.68% to HK$29.38. However, Alibaba (09988) reversed to rise 0.96% to HK$105.4, while Tencent (00700) gained 0.33% to HK$422.6.
NVIDIA's market capitalization approached a record high of nearly $6 trillion, driving AI hardware stocks higher in a sluggish market. Lenovo Group (00992) led the blue chips with a 4.9% rise to HK$36. Hua Hong Semiconductor (01347) gained 3.6% to HK$109.3. Among non-blue chips, Kingboard Laminates (01888) surged 9.31% to HK$54, Shenghong Technology (02476) rose 5.38% to HK$205.6, Montage Technology (06809) gained 3.94% to HK$301, and Zhongji Xuzhuang (03308) rose 3.64% to HK$1,111.
MTR Corporation (00066) was fined HK$2.25 billion due to delays in high-speed rail construction, causing its share price to fall 2.02% to HK$31.04, breaking below the 250-day moving average for the first time in a year and a half. Budweiser APAC (01876) announced restructuring costs and expected provisions would impact last quarter's profit, with its share price down 1.94% at midday to HK$5.565.
Despite cooling expectations for a U.S. rate hike this month, property stocks continued to fall. Henderson Land (00012) dropped 1.85% to HK$25.5, Sun Hung Kai Properties (00016) fell 1.32% to HK$104.6, Cheung Kong (01113) declined 1.35% to HK$45.28, and New World Development (00017), despite rumors of a new white knight investment plan, still fell 1.8% to HK$5.715.
The top three most actively traded HSI stocks were Tencent, Alibaba, and AIA (01299). AIA was quoted at HK$68.5, down 1%. The top three most actively traded stocks in the China Enterprises Index and the Tech Index were Tencent, Alibaba, and Lenovo Group. (ey)
