HK rises as region slips ahead of key tech earnings
Asian stocks slipped on Monday as the dour mood that sullied last week's trading continued, with investors gearing up for a crucial run of central bank decisions and tech earnings. In Hong Kong, the benchmark Hang Seng Index opened up 63 points, or 0.28 percent, at 23,156. The tech index was up 16 points, or 0.43 percent, to 3,888 while the China enterprises index rose 21 points, or 0.28 percent,…
The Asian stock market experienced a downturn on Monday as investors anticipated crucial central bank decisions and tech earnings releases. Hong Kong's Hang Seng Index started the day higher, gaining 63 points (0.28%) to 23,156. The tech index climbed 16 points (0.43%) to 3,888, while China Enterprises Index rose 21 points (0.28%) to 7,777.
In contrast, Shanghai Composite Index opened lower by 19 points (0.53%) at 3,671. The Shenzhen Component Index declined 113 points (0.97%) to 11,560, and ChiNext Index fell 38 points (1.43%) to 2,645. In Tokyo, the Nikkei dropped 243 points (0.39%) to 62,449, briefly reaching 62,856 before lunch. Seoul's Kospi fell 51 points (0.92%) to 5,499, and at one point during the morning session, it was 54 points lower.
The focus on AI-linked firms continues as concerns about the sustainability of the recent investment boom weigh on the market. Traders are uncertain about the returns from the substantial funds invested in the sector, with rising interest rates and bond yields casting doubt on companies' financial stability. This week, the release of earnings from major US companies such as Amazon, Microsoft, and Alphabet, as well as South Korean chipmakers SK hynix and Samsung, will be closely monitored.
Last week's disappointing results from Tesla and Meta have added to the investors' apprehension, contributing to the downward trend. Experts highlight that this earnings season may be the most critical yet, as Microsoft, Alphabet, and Amazon are scheduled to present their reports. Investors are seeking evidence that the billions poured into the compute buildout will lead to enduring earnings growth rather than just a temporary boost in capital expenditure.
The upcoming policy decisions from the US Federal Reserve, European Central Bank, and Bank of Japan will also be scrutinized. While the Federal Reserve is expected to maintain interest rates, traders will be keen to gauge its stance following last month's rate hike amid persistent inflation above the 2% target.
Written by urgent.news from RTHK News - Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
