Hong Kong stocks opened in the green on Friday after major Wall Street indices closed over 2% overnight despite high consumer inflation data for September. China’s subdued inflation for September also seems to have lifted sentiments.
|Alibaba Group Holding Ltd. BABA||3.37%|
|JD.com Inc JD||2.1%|
|Baidu Inc BIDU||4.01%|
|Tencent Holdings Ltd. TCEHY||3.17%|
|Nio Inc NIO||3.01%|
|XPeng Inc XPEV||1.38%|
|Li Auto Inc LI||0.44%|
The benchmark Hang Seng rose 3% in morning trade with shares of Alibaba and Baidu gaining over 3% in morning trade.
“U.S. equity markets initially struggled in the wake of the strong US CPI report but then rebounded. That may suggest a degree of optimism that the year-long selloff may be nearing an end. However, the bounce could also have been supported by some technical-driven buying and short covering,” ANZ Research said in a note.
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Macro News: China’s consumer inflation for September came in subdued as lockdowns continued to hurt spending habits, while soft commodity prices kept producer inflation under control, reported Bloomberg. The consumer price index rose 2.8% in September compared to a year earlier, the report said.
Liang Wannian, a National Health Commission panel expert in China has defended the zero-Covid policy stating it’s inevitable the curbs used by the country to control transmission have affected the economy, but the approach is scientific and effective, reported Bloomberg.
Company News: Nio is looking to enter the U.S. market by the end of 2025 and launch more affordable models as it ramps up its international expansion.
Volkswagen AG VWAGY software unit Cariad will spend over $2 billion to take a 60% stake in a new venture with Chinese technology firm Horizon Robotics.
Top Gainers and Losers: WuXi Biologics (Cayman) Inc. and ANTA Sports Products Limited are the top gainers among Hang Seng constituents having risen over 7% and 4%, respectively. CLP Holdings Limited and Galaxy Entertainment Group Limited are the only two losers having shed 0.45% and 0.23%, respectively.
Global News: U.S. futures traded in the green on Friday morning Asia session. The Dow Jones futures were up 0.52%, while the Nasdaq futures gained 0.67%. The S&P 500 futures were up 0.6%.
Elsewhere in Asia, Australia’s ASX 200 was up 1.91%. Japan’s Nikkei 225 gained 3.43% while China’s Shanghai Composite index was up 1.61%. South Korea’s Kospi rose 2.57%.
Image and article originally from www.benzinga.com. Read the original article here.