Jump to content

Hang Seng extends recovery as China's economic turmoil continues


Recommended Posts

Hong Kong saw the Hang Seng Index jump more than 2.70% on Friday, the best gain in two weeks.

1663052927707.jpgSource: Bloomberg
 
Hebe Chen | Market Analyst, Melbourne | Publication date: Tuesday 13 September 2022 

The Hang Seng and China's stock market returned from the long weekend with the risk-on sentiment as global investors await the US consumer price data for August.

Hang Seng weekly review

Hong Kong stocks made a spectacular recovery after plummeting for weeks. Falling to the five-month-low last Wednesday, the Hang Seng Index jumped more than 2.70% on Friday, the best day in two weeks.

Chin's CPI On September 9th, China reported its consumer prices for August. Prices rose at a slower-than-expected pace and an 18-month-low reading for producer inflation. The CPI increased 2.5% from the same month a year earlier, slower than 2.7% in July and the 2.8% average forecast. The reading was in line with the ascending prospect that the world's second-largest economy has been plagued by weakening domestic demand as the country continues to commit to its zero Covid policy.

1663052927762.JPGSource: Trading Economics

On the bright side, a lower inflation print is leaves more room for the People’s Bank of China to further ease its monetary policy, going in the opposite direction to most developed countries, in order to support local economic growth.

Hang Seng technical analysis

Despite last week’s strong rebound, the Hang Seng Index is still placed below the 20-day SMA, which could hold as resistance for the near term. Looking at the bigger picture, the downtrend stays enacted as illustrated in the sliding trajectory. If the momentum remains, a breaking higher will see the price retest the 50-day line near the 20000 key mark. However, in the event of a backfoot, key support appears to 19158, where the May low sits.

1663052927771.JPGSource: TradingView
Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • As crypto adoption explodes in the EU, Bitget is fueling the flames with Builders Meetups – engaging events designed for both crypto veterans and newbies. Imagine learning from the Bitget EU COO Apprentice and crypto bigwigs, then building your network with fellow enthusiasts (potential friends or collaborators!). Plus, expert talks will boost your crypto IQ and there might even be free swag! Bitget goes beyond exchange, fostering the community through educational resources on Bitget Academy and a user-friendly platform that welcomes newcomers to the exciting world of crypto. The "Meet Bitget: Your Gateway to Crypto Trading" event in Bucharest, Romania on July 18th is your chance to dive in – registration is free! Don't miss out and spread the word.
    • Zero gas fees, a massive prize pool, and the potential to bridge the gap between Web2 and Web3? I'm all in. This is exactly what the TON ecosystem needs to thrive. Can't wait to dive into all the activities and explore the potential of TON. Bitget Wallet is truly leading the way
    • It's great to see them expanding their reach and engaging with the crypto community in the Balkans. Networking with other crypto enthusiasts, learning about the latest trends, and potentially meeting the cex's EU COO Apprentice, it's a no-brainer. I'll be spreading the word to my crypto buddies in the region. Can't wait to see what insights and connections will come out of this.
×
×
  • Create New...
us