HK50 Analysis: HK50 is rising despite weak Hong Kong data

By IFCMarkets

HK50 is rising despite weak Hong Kong data

Hong Kong economic data in the last couple of weeks were mixed. Industrial production in Q4 declined 0.5% over same period a year ago following a 0.5% rise in Q3, and unemployment rose to 3.7% in February from 3.4% the prior month. However, consumer price inflation rose to 2.1% over year in February after 1.4% growth in the prior month. The impact of the coronavirus outbreak in China and globally had its negative impact on Hong Kong too. However, many governments launched massive monetary and fiscal aid programs to combat coronavirus impact. Hong Kong government undertook several fiscal measures including tax cuts, rent and financial aid payments to individuals. These measures, among others, included a $1200 cash subsidy to all adult permanent residents, paying one month’s rent for people living in public housing, cutting payroll, income, property, and business taxes, low interest government-guaranteed loans for businesses. Global stimulus measures buoyed investors’ confidence, and equity markets globally show recovery signs.

Summary of technical analysis

Market Analysis provided by IFCMarkets