Asian Markets Follow Wall Street's Lead as Hong Kong Tests Support Levels

Thursday’s trading session painted a cautiously optimistic picture across global bourses, with the Hang Seng Index facing renewed selling pressure despite broader positive signals from overseas. The benchmark index dipped 10.27 points to settle at 25,530.51, marking a marginal 0.04 percent decline as mixed performances across technology, property, financial and energy sectors kept investors on edge.

Global Backdrop Supports Asian Recovery Hopes

The momentum appears to favor a rebound on Friday. Wall Street’s rally set the tone with the Dow Jones Industrial Average surging 1.34 percent to a fresh record of 48,704.01, bolstered by strength in financial services and healthcare names. Bank of America’s upgrade of Visa to Buy status sparked broad strength in the blue-chip index, while Nike, UnitedHealth and American Express all contributed meaningfully to gains. The S&P 500 inched higher with a 0.21 percent advance to 6,901.00, though the NASDAQ faced headwinds from technology revaluations, slipping 0.25 percent to 23,593.86 as Oracle’s softer-than-expected revenue guidance raised fresh valuation concerns.

Thursday Quotes Show Mixed Signals in Hong Kong

The Hang Seng’s struggle reflects the complexity facing Asian equity markets. Trading ranged between 25,471.50 and 25,801.34 as selective weakness in high-profile names tempered enthusiasm. Alibaba Group retreated 1.70 percent while its health subsidiary stumbled further with a 3.95 percent loss. Technology exposure proved problematic as Lenovo plunged 2.67 percent and JD.com shed 0.44 percent. Consumer discretionary stocks similarly felt pressure, with Li Auto tumbling 1.65 percent and Li Ning retreating 1.37 percent.

Not all Thursday quotes delivered negative surprises. Henderson Land jumped 1.74 percent, Meituan rallied 1.50 percent and Xiaomi advanced 0.96 percent, suggesting selective opportunities remained for investors. Utility-linked stocks also held relatively steady, with Hong Kong & China Gas edging up 0.57 percent and Industrial and Commercial Bank of China collecting 0.49 percent.

Energy Weakness Reflects Global Supply Concerns

The broader Thursday session showed energy facing structural headwinds. West Texas Intermediate crude for January delivery declined 1.51 percent to $57.58 per barrel, weighed down by oversupply concerns as OPEC signals plans to pause output expansion into early 2026. This energy weakness likely rippled into Hong Kong trading, where CNOOC dropped 0.57 percent.

With the index hovering just above key technical support and Friday’s session approaching, the market appears positioned for potential mean reversion following Thursday’s losses, supported by the constructive global backdrop and earnings optimism that continues to underpin investor sentiment.