U.S. stocks continued their surge on Friday, with all three major indices posting weekly gains.  

The strong October nonfarm payroll data reinforced market expectations that the Federal Reserve’s interest rate hike cycle may be coming to an end.  

U.S. Treasury yields plunged, with the 10-year bond yield dropping below 4.5%. 

The substantial drop in Treasury yields drove the U.S. stock market higher. 

On Friday, U.S. bond yields continued to decline, with the 10-year yield briefly dipping below 4.5%, reaching an intraday low of 4.484%. 

The nonfarm payroll data released on Friday indicated a more significant slowdown in U.S. job growth in October than expected.  

This was partly due to a strike by the United Auto Workers (UAW) against the ‘Big Three’ Detroit automakers, which weighed on manufacturing employment.  

Additionally, wage inflation cooled, suggesting some relief in the labour market for auto workers. 

U.S. Stocks 

Fundamental Analysis: 

Apple Inc. reported a decline in revenue for the fourth consecutive quarter, with lower-than-expected earnings in the Greater China region.  

The company’s fourth-quarter revenue was $89.5 billion, lower than the previous year’s $90.146 billion, marking the fourth consecutive quarter of year-over-year revenue decline, the longest such streak since 2001.  

Furthermore, Apple’s revenue in Greater China for the fourth quarter reached $15.084 billion, falling short of analysts’ expectations of $17.1 billion and down from $15.47 billion in the same period last year. 

In the technology sector, Expedia reported a 12% drop in net profit for the third quarter, with diluted earnings per share of $2.87, or $5.41 on an adjusted basis, beating market expectations of $4.93.  

Quarterly revenue increased by 9% year-over-year to $3.929 billion, surpassing market expectations of $3.86 billion. 

Chinese concept stocks experienced a widespread increase in value, with the Nasdaq Golden Dragon Index rising by 2.99%.  

Hongen, HuaChuan Securities gained over 13%, while Century Internet, AllWinn, JinkoSolar, Yikatong Technology, and Waterdrop Corporation all surged by over 7%. 

Technical Analysis:   

(S&P 500 Index, 1-day chart) 

Market Trends: 

• Dow Jones Industrial Average up by 222.24 points, a 0.66% increase, closing at 34,061.32 points. 
• Nasdaq Composite Index (Nasdaq) up by 184.09 points, a 1.38% increase, closing at 13,478.28 points. 
• S&P 500 Index up by 40.56 points, a 0.94% increase, closing at 4,358.34 points. 

Hong Kong Stocks 

Hong Kong’s major indices opened higher and continued to rise.  

Core technology stocks showed strength, with Kuaishou up by over 6%, Meituan up by over 5%, and JD Group and Bilibili up by over 3%.  

Automobile stocks saw significant gains, with Ideal Motors surging by over 10%.  

Property stocks remained active, with Sun Hung Kai Properties leading with an almost 18% increase, and China Evergrande Group up by over 9%.  

Electronic components performed well, with Qutoutiao Technology surging by over 10%.  

Chinese brokerage stocks saw an overall increase, with CITIC Securities up by over 8%.  

In the pharmaceutical outsourcing sector, Kanglong Huacheng surged by nearly 13%, while petroleum stocks went against the trend, with PetroChina and CNOOC falling by around 3%. 

Chinese brokerage stocks saw an overall increase, with CITIC Securities up by over 8%.  

Following the Central Economic Work Conference’s emphasis on nurturing top-notch investment banks, the China Securities Regulatory Commission announced support for leading securities firms to become stronger through business innovation and mergers and acquisitions. Specific rules are being gradually implemented. 

Technical Analysis:  

(Hang Seng Index, 1-day chart) 

Market Trends: 

• Hang Seng Index (HSI) increased by 298.52%, closing at 17,962.64 points. 
• Hang Seng Tech Index (HSTECH) increased by 3.72%, closing at 4,084.01 points. 
• Hang Seng China Enterprises Index (HSCEI) increased by 1.97%, closing at 6,171.74 points. 

FTSE China A50 Index 

Fundamental Analysis: 

A-shares in China’s three major indices opened high and continued with a volatile upward trend.  

The Growth Enterprise Market (GEM) Index reclaimed 2,000 points, surging by over 3%.  

The Shenzhen Component Index rose by 2%, surpassing the 10,000-point milestone.  

The Shanghai Composite Index lagged slightly, with an increase of less than 1%. 

In terms of industry sectors, gaming, securities, cultural media, consumer electronics, and medical services showed strong growth, while a few sectors, such as coal, precious metals, petroleum, and agriculture, recorded declines.  

Themes like short dramas, CRO (Contract Research Organization), securities concepts, online gaming, and AIGC (Artificial Intelligence and Genetic Editing) were active. 

Technical Analysis: 

(SSE Composite Index, 1-day chart) 

Market Trends: 

• Shanghai Composite Index (SHCOMP) increased by 0.88%, closing at 3,057.5 points. 
• Shenzhen Component Index (SZCOMP) rose by 2.06%, closing at 10,056.82 points. 
• ChiNext Index (CHINEXT) gained 3.15%, closing at 2,030.15 points. 
• SSE STAR Market 50 Index (SSE50) increased by 1.81%, closing at 891.19 points. 

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