Hong Kong Stocks Rebound After Three-Day Slide, Eyes on 20-Day Moving Average
SingTao · 2 SOURCESabout 1 hour ago2 MIN
Summary
Hong Kong stocks rebounded Thursday after three consecutive days of decline as US markets staged a recovery and Treasury yields retreated from multi-year highs. The Hang Seng Index opened 171 points higher at 25,482, with heavyweight technology stocks including Tencent Holdings Ltd. (0700.HK) and Xiaomi Corp. (1810.HK) posting gains. The rebound follows a volatile session where the index dipped to 25,008 intraday before clawing back to close at 25,311, with HK$21.66 billion in turnover. Analysts are closely watching whether the 20-day moving average around 25,545 might emerge as resistance if the recovery stalls.
Key Points
- Hong Kong's Hang Seng Index opened at 25,482 on Thursday, up 171 points from the previous close
- Major tech stocks rallied: Tencent +1.37%, Xiaomi +0.86%, Alibaba +0.55%, while Meituan dipped 0.06%
- US markets ended their three-session losing streak with the Dow Jones rising 295 points (0.56%) to 53,061
- Nvidia surged 3.2% and Dell Technologies jumped 15.8% after beating earnings expectations
- The 10-year US Treasury yield pulled back to 4.78% after touching 4.82%, reducing pressure on equities
- Hong Kong had logged three straight days of declines before Thursday's bounce
- Southbound trading saw a net inflow of HK$4.093 billion, with AIA Insurance, ZTE and Tencent as top buys
- Shein (625) is scheduled for inclusion in the Hang Seng Composite Index effective September 15
Why It Matters
The technical picture remains fragile, with the 10-day moving average at 25,574, 20-day at 25,545, and the 10-month moving average at 25,504 clustering as potential resistance zones . If the Hang Seng cannot reclaim 25,600 and establish stability above the middle Bollinger Band, the 50-day moving average at 24,917 and 100-day at 25,227 could come under renewed pressure, potentially pulling Hong Kong equities toward support levels around 24,500-24,200 . Wells Fargo's warning that September historically brings "broadly cautious" sentiment adds another layer of caution for investors positioning in Hong Kong markets .
The technical picture remains fragile, with the 10-day moving average at 25,574, 20-day at 25,545, and the 10-month moving average at 25,504 clustering as potential resistance zones . If the Hang Seng cannot reclaim 25,600 and establish stability above the middle Bollinger Band, the 50-day moving average at 24,917 and 100-day at 25,227 could come under renewed pressure, potentially pulling Hong Kong equities toward support levels around 24,500-24,200 . Wells Fargo's warning that September historically brings "broadly cautious" sentiment adds another layer of caution for investors positioning in Hong Kong markets .