Hong Kong market indicated to open little changed

Hang Seng futures point to flat start even as US markets rallied overnight

PUBLISHED : Wednesday, 17 February, 2016, 9:09am
UPDATED : Wednesday, 17 February, 2016, 9:18am

Hong Kong stocks are in a wait-and-see mode, poised to open little changed on Wednesday, after two solid days of gains this week, although a stronger finish for US stocks Tuesday could act as a catalyst for a more upbeat tone as the session progresses.

The Hang Seng Index Futures February contract was trading at 19,100, down 41 points, or 0.21 per cent lower.

The Hong Kong market has been on a upward bias from the start of the week, and analysts expect further gains, after valuations touched a historical low late last week at 18,300 level.

In US trading Tuesday investors switched out of assets perceived as safe, such as gold and US government debt, chasing up stocks from a broad range of sectors.

The S&P 500 finished up 30.80 points, or 1.7 per cent, at 1,895.58, the Dow Jones Industrial Average closed 222.57 points higher, or 1.2 per cent, at 16,196.41. The Nasdaq Composite Index rallied 98.44 points, or 2.3 per cent, to close at 4,435.96.

On Tuesday, mainland Chinese markets surged to a three-week high after Premier Li Keqiang pledged to take action to prop up the economy if momentum slows to an unreasonable speed.

On the energy markets, crude-oil prices ended lower on Tuesday, giving back some recent gains. The West Texas Intermediate crude for March delivery fell 40 US cents, or 1.4 per cent, to settle at $29.04 a barrel, after trading as high as $31.53 a barrel in electronic trading.