(RTTNews.com) - The Hong Kong stock market on Tuesday snapped the two-day winning streak in which it had jumped nearly 700 points or 2.8 percent. The Hang Seng Index now rests just beneath the 23,350-point plateau and it's likely to open in the red again on Wednesday.
The global forecast for the Asian markets remains grim thanks to geopolitical concerns, economic outlook and plummeting crude oil prices. The European and U.S. markets were down and the Asian bourses figure to open in similar fashion.
The Hang Seng finished sharply lower on Tuesday with profit taking across the board - particularly among the casinos, financials and oil companies.
For the day, the index plummeted 806.60 points or 3.08 percent to finish at 25,346.55 after trading between 25,315.76 and 26,015.49.
Among the actives, Galaxy Entertainment plummeted 7.94 percent, while China Resources Land plunged 6.61 percent, WH Group tumbled 5.77 percent, Sands China skidded 5.26 percent, AIA Group dropped 4.64 percent, Tencent Holdings retreated 4.60 percent, China Mobile declined 3.87 percent, China Mengniu Dairy contracted 3.82 percent, China Petroleum and Chemical (Sinopec) shed 3.34 percent, CNOOC lost 2.89 percent, CSPC Pharmaceutical fell 2.66 percent, China Life Insurance slid 2.58 percent, Industrial and Commercial Bank of China was down 2.24 percent, Hong Kong & China Gas dipped 2.12 percent, New World Development dropped 1.96 percent and Ping An Insurance eased 0.78 percent.
The lead from Wall Street is negative as stocks opened sharply lower on Tuesday. They made back considerable ground in afternoon trade but still ended in the red.
The Dow shed 125.98 points or 0.50 percent to finish at 25,191.43, while the NASDAQ lost 31.09 points or 0.42 percent to 7,437.54 and the S&P 500 fell 15.19 points or 0.55 percent to 2,640.69.
The early sell-off reflected an extension of the significant weakness seen in overseas markets, which came amid worries about global economic growth and mounting geopolitical tensions.
A negative reaction to quarterly results from some big-name companies also contributed to sharp decline by stocks - including Caterpillar (CAT) and 3M Co. (MMM), although McDonald's (MCD) beat the street.
Crude oil prices plunged sharply on Tuesday amid speculation of a possible drop in demand due to uncertainty about the outlook for global economic growth. Crude oil futures for December delivery were down $2.93 or 4.2 percent at $66.43 a barrel, the lowest settlement since August 20.
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