Solid Gold Berjangka – Hong Kong’s Hang Seng Index fell 0.2% (or 68 points) to 24,280 during Wednesday's trading (Oct 14). The decline was driven by pressure on financial and technology stocks, which offset gains in the energy, electronics, and retail sectors.
Asian semiconductor stocks have begun to recover following a sharp sell-off. However, concerns regarding high valuations for artificial intelligence (AI) companies, competition within China's chip industry, and the massive scale of AI infrastructure investments continue to temper positive market sentiment.
Meanwhile, Brent crude prices rose to around US$106.60 per barrel amid escalating attacks on Saudi Arabia's energy infrastructure. This situation has sparked fears of oil supply disruptions from the Persian Gulf and raised concerns about the risk of rising global inflation.
In China, the Producer Price Index (PPI) surged to 5.0% year-on-year in September—the highest level since June 2022. Consumer Price Index (CPI) inflation rose to 0.9% but remained below the 1.0% forecast. Several stocks declined, including Akeso (-10.1%), Z.AI Co. (-1.8%), and AIA (-1.0%).
Looking ahead, investors are awaiting the release of US CPI data to gauge the direction of the Federal Reserve's interest rate policy. Higher-than-expected inflation could put pressure on the Hang Seng, whereas a lower-than-expected reading might pave the way for a recovery. Market sentiment is expected to remain cautious leading up to the data release. (asd)