HK joins regional markets in rising as oil fears ease
Share markets edged higher in Asia on Monday as AI's insatiable demand for data buoyed chipmakers, and oil eased on reports more oil was finding its way out of the Middle East than previously thought despite the ongoing conflict in the Gulf. In Hong Kong, the benchmark Hang Seng Index opened down two points, or 0.01 percent, at 24,748 before sharply reversing direction to be 140 points up at one…
Asian stock markets climbed on Monday as the rising demand for data fueled chipmakers, and a surge in oil export from the Middle East eased tensions. In Hong Kong, the Hang Seng Index started at 24,748 before quickly rebounding to a 140-point rise. The technology index dropped three points, while the China enterprises index rose four points.
To the north, the Shanghai Composite Index opened eight points higher at 3,920. The Shenzhen Component Index increased 75 points, and the ChiNext Index gained 0.93 percent. Meanwhile, the Nikkei remained closed for a holiday, while Seoul's Kospi rose 44 points, or 0.64 percent. US two-year yields hit a two-year high of 4.7604 percent after the Federal Reserve signaled potential further rate hikes.
Despite this, analysts expect two more rate hikes from the Fed this year. Central banks worldwide, including the EU, UK, Japan, Australia, and New Zealand, are likely to tighten monetary policy by year-end. The Swiss National Bank, Sweden's Riksbank, and Norges Bank held steady for now. Oil prices fell as Iran and the US traded new threats and the Houthis attacked Saudi Arabia.
Brent crude dropped 2.1 percent to $101.63 per barrel, while US crude fell 2.1 percent to $98.15. French debt saw a sharp increase in risk premiums, and German debt could face pressure due to poor election results for Chancellor Friedrich Merz's party.
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