Hong Kong, China – The Hong Kong tech index experienced a significant surge, with Bilibili leading the gains with an impressive 8% increase. Tech stocks showed strong performance as Bilibili reported a substantial revenue of 22.53 billion yuan ($3.11 billion) for 2023, expressing confidence in further revenue growth in 2024. The Hang Seng tech index rose by 2.6%, outperforming the broader Hang Seng index, which saw a more modest increase of about 0.6%. Other notable stocks in the sector, such as Baidu and Tencent, also saw positive movements with gains of 3.7% and 1% respectively.
In Japan, there is speculation of potential intervention in the yen as the currency weakened by 0.1% against the dollar, reaching its lowest level in 34 years. Steven Englander, head of Global G10 FX research at Standard Chartered Bank, indicated that Japanese authorities are close to intervening in the currency market to buy time until the US Federal Reserve adjusts interest rates or for the Bank of Japan to make rate adjustments. The possibility of yen intervention has sparked discussions among market participants about the government’s potential actions to support the currency.
Barclays suggests a shift in investment focus away from cash towards risk assets, highlighting the momentum slowdown for cash as an asset class. The firm believes that quarter-end rebalancing may favor bonds over stocks in the short term, while rate cuts and strong earnings fundamentals could drive a wider rally in the equity market. Potential changes in market leadership, particularly away from US tech stocks, could contribute to a healthier market expansion and further bolster the ongoing bull market.
GE Vernova and Solventum are set to join the S&P 500 in April, with Solventum, 3M’s healthcare business, expected to be added to the index on April 1 following its spin-off from the conglomerate. Similarly, GE Vernova, General Electric’s power business, will officially join the S&P 500 on April 2 after its separation from GE. Additionally, S&P Dow Jones Indices will see V.F. Corp and Dentsply Sirona removed from the broader market index, with the latter moving to the S&P Midcap 400.
After-hours trading saw notable movements in stocks, with RH and Verint Systems leading the way. RH, a luxury home furnishings retailer, reported a 7% increase in its share price, anticipating accelerated demand trends throughout fiscal year 2024 despite challenging business conditions. On the other hand, MillerKnoll faced a 12.8% decline after missing revenue estimates, while Sprinklr and Verint Systems experienced positive growth following better-than-expected earnings and revenue performances.