[True Insight Institutional View] US stocks surged sharply, Nasdaq rose 3.8%, Hang Seng Index expected to regain 250-day moving average

The three major U.S. stock indices surged sharply, with the Dow Jones Industrial Average rising 1,125 points or 2.5%, while the S&P 500 and Nasdaq Composite gained 2.9% and 3.8%, respectively. The Golden Dragon Index, which reflects the performance of Chinese concept stocks, also rose 2.8%.

As for the Chinese and Hong Kong stock markets, the Shanghai Composite Index and the Shenzhen Component Index diverged in early trading. The former rose as much as 0.65% at one point, while the latter was largely stable. However, their performance deteriorated in the afternoon. Both the Shanghai Composite and Shenzhen Component closed at their intraday lows, with the former falling 0.8% to close at 3,891 points, and the latter falling 1.8% to close at 13,478 points. The combined trading volume of the two markets was approximately 2 trillion yuan. The Hong Kong stock market, meanwhile, fluctuated but remained stable. The Hang Seng Index performed well in early trading, opening 67 points higher and rising as much as 237 points, approaching the 25,000-point mark. However, as the A-share market trend worsened, Hong Kong stocks quickly turned from gains to losses, falling as much as 191 points to a low of 24,559 points. The market improved before the close, and the Hang Seng Index ultimately managed to turn positive, rising slightly by 37 points or 0.15% to close at 24,788 points. The Hang Seng TECH Index fell 0.86% to close at 4,649 points, with the overall market turnover reaching HK$255.76 billion. Among the constituent stocks, blue-chip stocks with strong earnings were the focus. Hansoh Pharmaceutical (03692.HK) performed the best, rising about 7.3%. Meanwhile, $MIDEA GROUP(00300.HK), $CHINA RES MIXC(01209.HK), and $BOC HONG KONG(02388.HK) also reported solid earnings, with their stock prices rising between 5.6% and 6.8%. Among the declining stocks, BYD Electronic (00285.HK) performed the worst, falling 5.2%. Xinyi Solar (00968.HK), PetroChina (00857.HK), China Shenhua (01088.HK), Pop Mart (09992.HK), CNOOC (00883.HK), and Xinyi Glass (00868.HK) all fell more than 3%.

With hopes for an easing of tensions in the Middle East, the market is expected to rebound today. For now, we will watch to see if the Hang Seng Index can reclaim the 250-day moving average (25,128 points). If it can reclaim and stabilize above this level, it would suggest an overall improvement in the trend.

Source: Bright Smart Securities