【Zhenzhuo Institutional View】US stocks fell, Nasdaq dropped 1.6%, Hang Seng Index still faces resistance at 10-day moving average

The three major U.S. stock indices fell, with the Nasdaq experiencing the largest drop, down nearly 1.6%, while the Dow and S&P 500 fell 1.2% and 1.23%, respectively. The Golden Dragon Index, which reflects the performance of Chinese concept stocks, rose 0.9%.

As for the performance of the Chinese and Hong Kong markets yesterday, they diverged. Both the Shanghai and Shenzhen markets remained in decline throughout the day, with the Shenzhen Component Index falling as much as 2% at one point, closing at 13,952 points, down 1.44%. The Shanghai Composite Index fell as much as 1.3% in early trading, eventually closing at 4,075 points, down 0.64%, with total turnover for the two markets shrinking to RMB 2.17 trillion. In Hong Kong, the Hang Seng Index was mostly in decline throughout the day, opening 219 points lower and widening its losses to 436 points at one point, hitting a low of 26,410 points. The losses narrowed thereafter, and after the A-share market closed, the Hang Seng Index rebounded and turned positive, driven by $TENCENT(00700.HK), eventually closing at 26,885 points, up 0.14%. The Hang Seng Tech Index also ended its "five-day losing streak," rising 0.74% to close at 5,406 points, with total turnover for the day at HKD 315.1 billion. Among the constituents, $HAIDILAO(06862.HK) performed the worst, rising over 4%, while $LENOVO GROUP(00992.HK), WuXi AppTec (02359.HK), and Shenzhou International (02313.HK) also rose over 3%. Notably, Tencent (00700.HK) fell as much as HKD 541 in early trading but closed slightly up 0.1% at HKD 558.5. Among the decliners, Zijin Mining (02899.HK) performed the worst, falling nearly 4.8%, while New Oriental (09901.HK), which had surged recently, retreated, falling about 3.1%. China Life (02628.HK) and AIA (01299.HK) also fell 2.7% and 2.5%, respectively.

Although the Hang Seng Index stabilized at the close yesterday and the Hang Seng Tech Index turned positive, the overall performance was mediocre, with resistance still at the 10-day moving average (27,116 points). A breakthrough is needed for the trend to improve.

Source: Bright Smart Securities