Hang Seng Index Sees 1.89% Increase Amidst Global Market Tensions
US Equity Markets Slip on Geopolitical Risk
On Thursday, October 3, the US equity markets recorded losses amid rising tensions in the Middle East. The Dow declined by 0.44%, while the Nasdaq Composite Index and the S&P 500 saw losses of 0.04% and 0.17%, respectively.
- Reports of discussions between the US and Israel regarding a potential strike on Iranian oil targets impacted demand for riskier assets.
- WTI oil prices surged above $73, intensifying fears of further escalation in the conflict.
Asian Market Reaction
The overnight losses and risk-off sentiment set the tone for the Friday Asian session.
US Services PMI and Jobless Claims in Focus
US economic indicators influenced market risk sentiment. The ISM Services PMI jumped from 51.5 in August to 54.9 in September, easing expectations of aggressive Fed rate cuts. Initial jobless claims slightly rose from 219k to 225k, signaling a resilient US labor market.
Expert Views
Shane Oliver, Chief Economist at AMP, noted, “US initial jobless claims +6k, continuing claims -1k. This suggests labor market resilience.”
Hang Seng Index Climbs Ahead of China Reopen
The Hang Seng Index advanced by 1.89% during Friday morning, defying US market losses. Investor expectations of Beijing's policy measures boosting the Chinese economy drove demand for HK-listed stocks.
- Real estate and tech stocks saw significant gains.
- The Hang Seng Mainland Properties Index gained 2.82% with notable performers like Shimao Group Holdings Ltd. rising 13%.
Meanwhile, the Hang Seng Tech Index was up 2.82% with gains for Alibaba and Tencent.
Nikkei Index and ASX Performance
The Nikkei 225 advanced by 0.24%. In contrast, the ASX 200 Index slid by 0.90% due to losses in mining sector stocks.
Investor Outlook
Investors should stay alert to updates from central banks, the US Jobs Report, and geopolitical developments.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.