Hang Seng Index Rises on Stimulus Optimism
15 Jun 2023
Hang Seng Index Rises on Optimism for Stimulus
The Hang Seng Index and the larger Asian markets had a positive morning. Chinese economic data did not alarm investors.
- The Hang Seng Index led the Nikkei and ASX 200 during the optimistic morning.
- The markets ignored the higher predicted Fed Funds Rate peak of 5.6% in response to investor reaction to the Fed’s pause.
- Despite China’s disappointing economic figures, the PBoC’s support helped to contain the damage.
Despite China’s weaker-than-expected economic figures, the Hang Seng gained 0.63%. The negative numbers are countered by anticipation of additional PBoC stimulus.
Tencent Holdings Ltd (HK:0700) and Alibaba Group Holding Ltd (HK:9988) both experienced advances of 0.98% and 2.17%, respectively, when looking at the key components.
However, the early session was unfavorable for bank stocks. The Industrial and Commercial Bank of China (HK:1398) and China Construction Bank (HK:0939) both had losses of 0.20% and 0.48%, as opposed to HSBC Holdings PLC’s flat performance.
HANG SENG TECHNICAL ANALYSIS DAILY CHART:
Hang Seng is currently trading in the up channel.
Hang Seng is currently trading above all SMA.
RSI is in buying zone which suggests bullishness and Stochastic is suggesting up trend.
Immediate resistance is at 19889 & its immediate support level is 19671
HOW TO TRADE HANG SENG IN THIS WEEK
After declining, the price of Hang Seng turned upward. and began trading higher; as of right now, the price has broken above its previous day’s high and is trading around the key resistance level; if this level is broken, more upside is expected.