FX.co ★ Higher Open Again Called For Hong Kong Shares

The Hong Kong stock market has been on a strong upward trajectory with two consecutive profitable sessions, accumulating more than 600 points, an increase of approximately 3.8 percent. The Hang Seng Index is now just below the 16,830-point marker, and it is expected to find even more support for growth this Wednesday.

Global forecasts suggest a positive outlook for Asian markets, fueled by optimism surrounding the upcoming financial earnings season. European and U.S. markets have performed admirably, and similar patterns are anticipated for Asian exchanges.

On Tuesday, the Hang Seng index reported broad gains, with financial, property, and technology sectors showing the most significant increases. The index rose by 317.24 points, or 1.92 percent, ending the day at 16,828.93 after fluctuating between 16,599.21 and 16,846.13.

Leading the pack, Alibaba Group rose by 1.97 percent, Alibaba Health Info by 1.13 percent, ANTA Sports by 1.93 percent, and China Life Insurance by 1.39 percent. Galaxy Entertainment advanced 1.01 percent, Hong Kong & China Gas increased 1.57 percent, and JD.com surged 6.07 percent. Meituan witnessed a significant jump by 7.95 percent, while New World Development grew by 2.65 percent and Xiaomi Corporation spiked by 2.28 percent.

The positive trend also came from Wall Street, where all the main indicators opened stronger on Tuesday and maintained this throughout the trading day. The Dow increased by 263.71 points or 0.69 percent, the NASDAQ by 245.33 points or 1.59 percent, and the S&P 500 climbed by 59.95 points or 1.20 percent.

The markets were guided by impressive quarterly earnings from companies like Globe Life, GE Aerospace, Kimberly-Clark and General Motors. Additionally, the Commerce Department reported an unexpected rise in new home sales in March, although there was a decline in building permits. Financial enthusiasts are now keenly waiting for more economic statistics this week, which includes the first-quarter U.S. GDP data and the core personal-consumption expenditures (PCE) price index.

Simultaneously, Tuesday saw an increase in oil prices due to the slowdown in U.S. manufacturing activity in April. This slowdown raised expectations of the Federal Reserve commencing cuts on interest rates. Consequently, West Texas Intermediate crude oil futures for June went up by $1.46 or 1.78 percent, hovering at $83.36 a barrel.