Overbought Hang Seng Nonetheless Called Higher

(RTTNews) - The Hong Kong stock market has moved higher in five straight sessions, collecting more than 900 points or 5.2 percent along the way. The Hang Seng Index now sits just above the 18,000-point plateau although its overdue for profit taking on Friday.

The global forecast for the Asian markets is upbeat on optimism for the outlook for both the economy and for interest rates. The European and U.S. markets were sharply higher and the Asian bourses are expected to open in similar fashion - although there may be profit taking as the day progresses.

The Hang Seng finished sharply higher on Thursday with gains across the board, especially among the properties and technology stocks.

For the day, the index surged 353.14 points or 2.00 percent to finish at 18,013.16 after trading between 17,602.45 and 18,071.10.

Among the actives, Alibaba Group climbed 3.44 percent, while Alibaba Health Info rallied 4.91 percent, ANTA Sports improved 2.63 percent, China Life Insurance advanced 2.76 percent, China Mengniu Dairy jumped 4.87 percent, China Resources Land surged 7.77 percent, CITIC rose 1.58 percent, CNOOC perked 0.11 percent, CSPC Pharmaceutical was up 0.86 percent, Galaxy Entertainment strengthened 4.49 percent, Haier Smart Home soared 7.69 percent, Hang Lung Properties gained 1.82 percent, Henderson Land added 2.06 percent, Hong Kong & China Gas dropped 0.93 percent, Industrial and Commercial Bank of China collected 0.23 percent, JD.com surged 7.19 percent, Lenovo sank 0.64 percent, Li Auto soared 5.39 percent, Li Ning rallied 4.85 percent, Meituan strengthened 4.04 percent, New World Development perked 1.40 percent, Nongfu Spring accelerated 5.13 percent, Techtronic Industries increased 2.48 percent, Xiaomi Corporation gathered 1.43 percent and WuXi Biologics spiked 5.21 percent.

The lead from Wall Street is broadly positive as the major averages opened solidly higher and remained firmly in the green throughout the session.

The Dow surged 522.09 points or 1.26 percent to finish at 42,025.19, while the NASDAQ rallied 440.68 points or 2.51 percent to end at 18,013.98 and the S&P 500 advanced 95.38 points or 1.70 percent to close at 5,713.64.

The rally on Wall Street came as traders continued to digest the Federal Reserve's decision on Wednesday to slash interest rates by half of a percentage point.

Fed officials also forecast continued rate cuts over the coming months and into next year, generating optimism the central bank will be able to engineer a soft landing for the economy.

Adding to the optimism about the economy, the Labor Department released a report showing first-time claims for U.S. unemployment benefits fell to a nearly four-month low last week.

Oil prices moved higher on Thursday with rising tensions in the Middle East raising possibility of disruptions in supply. West Texas Intermediate Crude oil futures for October ended up by $1.04 or 1.5 percent at $71.55 a barrel.

Closer to home, Hong Kong will release August numbers for consumer prices later today; in July, overall inflation was up 1.0 percent on month and 2.5 percent on year.