Hang Seng Follows US Equities, Trades Mixed
The US equities markets were followed by the Hang Seng Index into positive territory.
Asia-Pacific markets are trading mixed as the region awaits China’s May trade statistics and a speech from Reserve Bank of Australia governor Philip Lowe, a day after Australia’s central bank defied forecasts and hiked its benchmark interest rate to its highest in 11 years.
The Hang Seng Index and the larger Asian markets had a mixed morning. Support was given in the interest of stimulating Chinese economic growth.
Support came from investor betting on a Fed pause and expectations of stimulus to jump-start the Chinese economy.
The Asian markets had a mixed morning session on Wednesday. The Nikkei dipped on worries about global growth, but the Hang Seng Index followed the US share markets into positive territory.
The Hang Seng gained 0.97% this morning on expectations for a Chinese boost.
Tencent Holdings Ltd (HK:0700) and Alibaba Group Holding Ltd (HK:9988) each saw gains of 1.69% and 1.70% when looking at the key factors.
Also having a positive morning session were bank stocks. HSBC Holdings PLC increased by 1.02%, while increases of 0.94% and 0.79% were recorded by the Industrial and Commercial Bank of China (HK:1398) and China Construction Bank, respectively.
According to government data, China’s exports decreased in May more than was anticipated.
Exports decreased 7.5% year over year in U.S. dollars, exceeding the 0.4% prediction in a Reuters poll. In the meantime, imports declined 4.5% year over year, slightly better than the predicted 8% decline.
HANG SENG TECHNICAL ANALYSIS DAILY CHART:
Hang Seng is currently trading in the down channel.
Hang Seng is currently trading above 5&20 SMA.
RSI is in buying zone which suggests bullishness and Stochastic is suggesting up trend.
Immediate resistance is at 19345 & its immediate support level is 19046
HOW TO TRADE HANG SENG IN THIS WEEK
HANG SENG’s price began moving significantly upward after briefly sliding downward, and it is currently trading at a key resistance level. If this level breaks and remains above itself, we can expect further upward movement for Hang Seng.