The Hong Kong stock market closed higher on Monday (July 6th), supported by falling oil prices and the prospect of increased global crude supply. This helped ease market concerns about inflationary pressures.
The Hang Seng Index rose 1.1%, or 266.29 points, to 23,616.32. Meanwhile, the Hang Seng China Enterprises Index rose 1.5%, or 112.59 points, to close at 7,812.35.
Positive sentiment stemmed from the relatively smooth flow of shipping through the Strait of Hormuz. Although there have been no major developments in the US-Iran peace talks, the market believes the risk of energy supply disruptions is becoming more manageable.
Furthermore, OPEC+ agreed to raise its production target by 188,000 barrels per day starting in August. This decision follows similar increases in June and July. Following this news, Brent prices fell to a near four-month low, easing energy inflationary pressures.
On the domestic economic front, Hong Kong’s private sector activity recorded its fastest growth in four months in June. The S&P Global Hong Kong SAR Purchasing Managers’ Index (PMI) rose to 52.0 from 50.4 in May, signaling the strongest improvement in business conditions since February. However, FS.com shares plunged nearly 9% after the company agreed to acquire Shanghai Baud Data Communication for 330 million yuan. (asd)
Source: Newsmaker.id