The global forecast for Asian markets is mixed on renewed concerns over bond yields
The stock market in Hong Kong has wobbled between positive and negative finishes over the last 10 trading days since the end of the seven-day winning streak in which it had soared over 1,950 points or 7 percent. The Hang Seng Index now sits just above 29,880 point although it’s due for profit taking on Thursday.
The global forecast for Asian markets is mixed to lower due on renewed concerns over bond yields. European markets were higher and U.S. bourses were down and somewhat overbought Asian markets are tipped to follow the latter lead.
The Hang Seng ended sharply higher on Wednesday following gains from financials, technology stocks, properties and casinos.
The index soared 784.56 points or 2.70 percent to end at 29,880.42 after trading between 29,183.59 and 29,912.00.
The lead from Wall Street is negative as stocks opened mixed on Wednesday but finished firmly in the red, with the tech-heavy NASDAQ hit especially hard.
The Dow dipped 121.43 points or 0.39 percent to end at 31,270.09, while the NASDAQ sank 361.04 points or 2.70 percent to finish at 12,997.75 and the S&P 500 fell 50.57 points or 1.31 percent to end at 3,819.72.
The continued weakness on Wall Street came as bond yields rebound notably after trending lower over the past few sessions. Yields remain well off the highs set last week, but renewed concerns about the outlook for interest rates and inflation weighed on tech stocks.
The rebound by yields came amid hopes about the coronavirus vaccine rollouts, which had also contributed to an advance by stocks futures before the bond markets opened. President Joe Biden has said the U.S. will have enough supply of vaccine for every adult in America by the end of May.
In economic news, payroll processor ADP noted weaker than expected private sector job growth in February, while the Institute for Supply Management reported a slowdown in U.S. service sector activity last month.
Crude oil futures were sharply higher Wednesday amid speculation that OPEC may extend production curbs for the near future. West Texas Intermediate (WTI) Crude oil futures for April closed $1.53 or 2.62 percent higher at $61.28 a barrel.
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