The Economic Information Daily reported on the 16th that the US Producer Price Index (PPI) for September rose 1.3% month-on-month, accelerating from 0.5% in August and far exceeding the expected 0.6%. The year-on-year increase also accelerated from 5.6% to 6.3%, significantly higher than the expected 5.4%. The data indicates intensifying inflationary pressures, yet retail stocks performed well while chip stocks continued to decline. The Philadelphia Semiconductor Index dropped 0.88%, closing at 11,581 points, marking its seventh consecutive trading day of decline. The Dow Jones Industrial Average rose 556 points, or 1.08%, closing at 52,177 points; the S&P 500 gained 25.18 points, or 0.33%, to 7,744 points; the Nasdaq Composite rose 20.16 points, or 0.08%, to 26,713 points.
*Night session futures up over 200 points, ADRs of Chinese stocks rebound*
The Hang Seng Tech Index, reflecting the performance of Chinese concept stocks, surged 1.96%. Alibaba fell 0.04% to $111.13; JD.com rose 2.66% to $27.39; Baidu gained 0.85% to $82.56; Li Auto climbed 1.78% to $11.46; XPeng rose 2.23% to $9.63; NIO gained 2.64% to $3.50; Bilibili rose 1.12% to $14.43.
The Hang Seng Index night session futures closed at 24,274, up 211 points, with a premium of 211 points. In overnight ADR trading, Meituan (03690) ADR was 1.19% higher than its Hong Kong counterpart, equivalent to HK$76.4; CK Hutchison (00001) ADR was 0.32% higher, equivalent to HK$65.2; Tencent (00700) ADR was 0.67% higher, equivalent to HK$420.6; Xiaomi (01810) ADR was 0.49% higher, equivalent to HK$27.2; HKEX (00388) ADR was 0.46% higher, equivalent to HK$373.1; HSBC (00005) ADR was 0.32% higher, equivalent to HK$148.4; AIA (01299) ADR was 0.73% higher, equivalent to HK$73.0.
*E-commerce stocks may rally on Singles' Day hype, black session futures rise signaling Hang Seng rebound*
The Hang Seng Index was volatile and weak yesterday, briefly falling below the 24,000 level, causing hundreds of at-the-money bull certificates to be knocked out, though the overall impact on bull certificates remained limited. Bulls increased positions in other categories, with the total number of outstanding bull certificates slightly rising to 8,905. The key concentration zone remained between 23,600 and 23,699, which also saw the most new additions—173 out of the total 1,338 new certificates. Conversely, bearish positions clearly decreased, with some bears taking profits and exiting. The latest bear certificate outstanding dropped by 853 to a total of 8,977, with the key concentration zone remaining between 24,600 and 24,699, though the quantity slightly decreased to 908. Only some aggressive bears increased positions in closer strike price ranges, with issuers newly opening three 100-point ranges from 24,200 to 24,499, totaling 443 positions. Given that both night session and black session futures rose over 200 points, closer strike bear certificates today appear vulnerable.
The Singapore HS50 index, known as the 'black session' futures, is currently up 236 points at 24,273, with a premium of 211 points, suggesting the Hang Seng Index is likely to open about 200 points higher.
The US September PPI, like the CPI released the previous day, showed a year-on-year increase higher than expected, further reinforcing the need for future rate hikes by the Fed, with the only question being which month the hike will occur. The yield on the US 10-year Treasury note fell 15.02 basis points overnight to a low of 5.0351%, but Wall Street tech stocks did not see significant gains. Instead, selling pressure on AI-related stocks continued, compounded by Anthropic's AI large model showing a sequential slowdown in last quarter's revenue growth, suggesting AI-related stocks may struggle to rebound. However, leading Hong Kong tech stocks remain undervalued, and with Singles' Day approaching, the three major e-commerce stocks may experience a speculative rally, driving the Hang Seng Index higher. Nevertheless, A-share market performance remains concerning—the Shanghai Composite Index briefly fell below 3,700 yesterday and, although it narrowly held that level at close, it has dropped to its lowest level in over a year. If A-shares fail to stabilize and rebound in the short term, it may affect the Hang Seng Index's rebound momentum. (vs)
*Night session futures up over 200 points, ADRs of Chinese stocks rebound*
The Hang Seng Tech Index, reflecting the performance of Chinese concept stocks, surged 1.96%. Alibaba fell 0.04% to $111.13; JD.com rose 2.66% to $27.39; Baidu gained 0.85% to $82.56; Li Auto climbed 1.78% to $11.46; XPeng rose 2.23% to $9.63; NIO gained 2.64% to $3.50; Bilibili rose 1.12% to $14.43.
The Hang Seng Index night session futures closed at 24,274, up 211 points, with a premium of 211 points. In overnight ADR trading, Meituan (03690) ADR was 1.19% higher than its Hong Kong counterpart, equivalent to HK$76.4; CK Hutchison (00001) ADR was 0.32% higher, equivalent to HK$65.2; Tencent (00700) ADR was 0.67% higher, equivalent to HK$420.6; Xiaomi (01810) ADR was 0.49% higher, equivalent to HK$27.2; HKEX (00388) ADR was 0.46% higher, equivalent to HK$373.1; HSBC (00005) ADR was 0.32% higher, equivalent to HK$148.4; AIA (01299) ADR was 0.73% higher, equivalent to HK$73.0.
*E-commerce stocks may rally on Singles' Day hype, black session futures rise signaling Hang Seng rebound*
The Hang Seng Index was volatile and weak yesterday, briefly falling below the 24,000 level, causing hundreds of at-the-money bull certificates to be knocked out, though the overall impact on bull certificates remained limited. Bulls increased positions in other categories, with the total number of outstanding bull certificates slightly rising to 8,905. The key concentration zone remained between 23,600 and 23,699, which also saw the most new additions—173 out of the total 1,338 new certificates. Conversely, bearish positions clearly decreased, with some bears taking profits and exiting. The latest bear certificate outstanding dropped by 853 to a total of 8,977, with the key concentration zone remaining between 24,600 and 24,699, though the quantity slightly decreased to 908. Only some aggressive bears increased positions in closer strike price ranges, with issuers newly opening three 100-point ranges from 24,200 to 24,499, totaling 443 positions. Given that both night session and black session futures rose over 200 points, closer strike bear certificates today appear vulnerable.
The Singapore HS50 index, known as the 'black session' futures, is currently up 236 points at 24,273, with a premium of 211 points, suggesting the Hang Seng Index is likely to open about 200 points higher.
The US September PPI, like the CPI released the previous day, showed a year-on-year increase higher than expected, further reinforcing the need for future rate hikes by the Fed, with the only question being which month the hike will occur. The yield on the US 10-year Treasury note fell 15.02 basis points overnight to a low of 5.0351%, but Wall Street tech stocks did not see significant gains. Instead, selling pressure on AI-related stocks continued, compounded by Anthropic's AI large model showing a sequential slowdown in last quarter's revenue growth, suggesting AI-related stocks may struggle to rebound. However, leading Hong Kong tech stocks remain undervalued, and with Singles' Day approaching, the three major e-commerce stocks may experience a speculative rally, driving the Hang Seng Index higher. Nevertheless, A-share market performance remains concerning—the Shanghai Composite Index briefly fell below 3,700 yesterday and, although it narrowly held that level at close, it has dropped to its lowest level in over a year. If A-shares fail to stabilize and rebound in the short term, it may affect the Hang Seng Index's rebound momentum. (vs)
