Solid Gold Berjangka – The Hang Seng Index fell by approximately 0.4% in Wednesday’s trading, pressured primarily by declines in technology and consumer stocks. Investor sentiment was dampened by concerns over potential stricter regulations on the artificial intelligence (AI) industry in the United States, as well as uncertainty regarding policy direction following the U.S. midterm elections.
Pressure was also evident in U.S. stock futures; Nasdaq 100 futures dropped by about 0.9%, while S&P 500 futures weakened by 0.5%. Investors are closely monitoring the possibility of a shift in control of the U.S. Congress and its potential impact on technology policy and the oversight of major corporations.
Nevertheless, stronger-than-expected financial results from AMD provided some support to the semiconductor sector. However, this positive sentiment was insufficient to lift the broader market, while the CSI 300 index also fell by approximately 0.2%, despite ongoing efforts by Beijing to bolster the market.
On the economic front, Hong Kong showed positive signs, with third-quarter gross domestic product (GDP) growing by 5.2% year-on-year—an improvement from the 4.2% growth recorded in the previous quarter. Yet, these robust economic data were not enough to fully offset the pressure on technology stocks. Xiaomi fell 2.2%, Trip.com weakened by 2.6%, and Meituan corrected by 1.4%, while SMIC rose 1.1% and Wuxi Biologics gained 4.3%.
Investors are also keeping a close watch on China’s currency policy, following an announcement by the People's Bank of China (PBoC) regarding plans to increase the foreign exchange reserve requirement ratio—a move aimed at curbing the appreciation of the yuan. In the near term, the Hang Seng Index is expected to remain sensitive to global tech sentiment, U.S. policy direction regarding the AI sector, and shifts in China’s economic and currency policies. (srh)