Hong Kong Bourse May Reverse Thursday's Losses

The Hong Kong market snapped its impressive four-day winning streak on Thursday, surrendering nearly 114 points as the Hang Seng Index settled at 26,086.32. But don't get too bearish - Friday's session looks primed for a rebound.

I've watched this market climb almost 1,250 points (4.9%) during that winning streak, only to see tech stocks drag things down yesterday. The pullback felt almost inevitable after such a strong run.

Looking at the trading action, it was a bloodbath for some major tech names. CSPC Pharmaceutical absolutely tanked, plummeting 7.5%, while Meituan wasn't far behind with a 5.06% nosedive. WuXi Biologics stumbled badly too, dropping 4.26%.

But it wasn't all doom and gloom. Lenovo surged 2.3%, while China Mengniu Dairy and Techtronic Industries both jumped nearly 2%. The property and financial sectors delivered mixed performances, providing some stability amid the tech carnage.

The global forecast actually looks quite promising. European and U.S. markets closed higher yesterday, riding optimism about potential interest rate cuts. Wall Street rallied after the latest inflation data and jobless claims, with the Dow surging an impressive 617 points.

The Fed's next move seems increasingly clear - CME Group's FedWatch Tool now shows a 94.8% chance of a quarter-point cut next week. Only a slim 5.2% possibility remains for a more aggressive half-point reduction.

Oil markets took a hit though, with crude prices falling sharply after the International Energy Agency boosted supply estimates for 2025-26, suggesting we're heading toward oversupply conditions.

Given the positive global sentiment and the technical setup following yesterday's pullback, I expect Hong Kong stocks to find renewed support today. The question isn't whether we'll see green, but rather how much of Thursday's losses the market can reclaim.