How does the Fed rate cut affect overseas markets? Sealand: Hong Kong stocks in the technology sector perform well under loose trading conditions.

Sealand releases a strategy report discussing how the Federal Reserve's interest rate cuts affect overseas markets. Sealand believes that for the Hong Kong stock market, the overall performance under three types of trading is as follows: loose trading > recovery trading > recession trading, with higher consistency with US stocks compared to A shares. Against the backdrop of a soft landing in the US economy, the Hong Kong stock market benefits more. The technology sector in the Hong Kong stock market performed the best overall in loose trading, and financial stocks can also be focused on under the substantial inflow of southbound funds; during the recovery trading period, apart from technology and banks, some durable consumer goods also showed certain performance; during the recession trading period, utility and energy sectors are the most resilient. In other regional stock markets, global stock markets generally rose during loose trading, with Hong Kong and Germany showing prominent gains; during recession trading, emerging markets in Asia such as India and Vietnam saw relatively smaller declines; during recovery trading, the Japanese stock market performed well while European stocks were relatively weak. Sealand points out that after considering exchange rate factors, the euro's appreciation during loose trading leads to a wider comparative advantage for European stocks, with Hong Kong stocks still leading; under a depreciating yen, the advantage of Japanese stocks during recovery trading will shrink, while the advantage of emerging markets during recession trading will not change significantly. Looking at industries that dominate in non-US markets, there are two possible clues: industrial goods and information technology during loose or recovery trading, or consumer goods during recession trading; and each country's leading industries, such as semiconductors in Japan and South Korea, hardware equipment in Vietnam, and software services in India.