US stocks mixed with Dow slightly down; Hong Kong stocks struggle to break out of range-bound trading

The three major U.S. stock indices showed mixed performance, with the Dow Jones Industrial Average slightly down by less than 0.1%, while the S&P 500 and Nasdaq indices rose by 0.1% and 0.22% respectively. The Golden Dragon Index, which reflects the performance of Chinese concept stocks, rebounded by 0.39%.

Both the Chinese and Hong Kong stock markets showed mixed performance yesterday. In the A-share market, the Shanghai Composite Index fluctuated within a narrow range, ultimately falling slightly by 2 points to close at 3,875 points. In contrast, the Shenzhen Component Index performed better, rebounding after a weak start to close up 0.4% at 13,006 points, with daily turnover shrinking to approximately 1.55 trillion yuan. The Hong Kong stock market was lackluster in early trading, with the Hang Seng Index opening 43 points higher but quickly turning negative, hitting a low of 25,649 points. However, tech stocks rallied in the afternoon, pushing the Hang Seng Index up by as much as 230 points to 25,990 points before closing at 25,935 points, up 175 points or 0.68%. The Hang Seng Tech Index also rose 1.5% to close at 5,615 points, with daily turnover at approximately 179.3 billion yuan. Among the constituent stocks, the WuXi AppTec group performed the best, with WuXi Biologics (02269.HK) rising 7.1% and WuXi AppTec (02359.HK) up 5.4%. Meanwhile, Xiaomi (01810.HK) saw a sudden surge in buying interest in the afternoon, closing up nearly 4.4%. On the downside, Shenzhou International (02313.HK) was the worst performer, falling 4.7% for the day, while Sands China (01928.HK) and MTR Corporation (00066.HK), which had previously performed well, also saw pullbacks, falling 1.56% and 1.26% respectively.

Although the Hang Seng Index failed to reclaim the 26,000-point level yesterday, it did manage to climb back above the 10-day moving average (25,838 points), indicating that the market remains in a tug-of-war. With factors such as the upcoming U.S. interest rate decision next week, the short-term market outlook is expected to remain directionless, with support at 25,500 points and resistance at 26,300 points.

Source: Bright Smart Securities