Bonds Recover, Hang Seng Rises Again
The Hong Kong stock market closed higher in Thursday's trading (Aug 20) after a recovery in global bond markets eased investor concerns regarding high yields. Technology stocks also rallied, helping to push the market higher.
The Hang Seng Index rose 203.42 points, or 0.8%, to 25,698.49, while the Hang Seng China Enterprises Index gained 76.63 points, or 0.9%, to 8,547.84.
Positive sentiment emerged after the US Treasury Department announced plans to double the volume of long-term bond buybacks. This move helped suppress Treasury yields and improve global risk appetite. However, rising oil prices driven by Middle East tensions remain a risk factor to watch.
Among individual stocks, CSPC Pharmaceutical Group surged nearly 9% after reporting a 139% increase in first-half profit to 6.09 billion yuan. Bank of East Asia also rose approximately 6% after posting a first-half net profit of HK$2.42 billion.
Newsmaker Analysis: The Hang Seng's gains indicate that the market is being supported by easing global yield pressures and the positive performance of several listed companies. As long as bond market sentiment remains stable and technology stocks maintain their momentum, the Hang Seng has the potential to continue its rebound. However, surging oil prices and geopolitical risks could still limit further gains. (arl)
Source: Newsmaker.id
