[Zhenzhuo Institutional View] Asian market exports may slow down due to insufficient energy, with Stock Connect (for Hong Kong) seeing a net inflow of RMB 11.28 billion on Wednesday.

Market Commentary

Driven by concerns over the closure of the Strait of Hormuz and supply disruptions, Brent crude oil briefly rose above USD 101 per barrel. The market is repricing inflation and the Fed's interest rate cut path, leading to higher US Treasury yields and pressure on growth and high-valuation sectors. In the Asia-Pacific region, investors are concerned about simultaneous pressure on global growth and funding costs. With oil prices remaining high and the Middle East situation uncertain, exports from Asian markets may slow down due to potential energy shortages.

Southbound Stock Connect recorded a net inflow of 11.28 billion yuan on Wednesday. Among these, $TRACKER FUND(02800.HK) saw the largest inflow, reaching 4.7 billion HKD; followed by $CNOOC(00883.HK). $TENCENT(00700.HK) recorded the largest net outflow, at 480 million HKD; followed by $BABA-W(09988.HK).

Source: KGI Securities