Markets

Hong Kong Bourse Expected To Erase Tuesday's Losses

(RTTNews) - The Hong Kong stock market has moved lower in two of three trading days since the end of the two-day winning streak in which it had gathered more than 230 points or 0.9 percent. The Hang Seng Index now rests just above the 25,475-point plateau although it's likely to move higher again on Wednesday.

The global forecast for the Asian markets is mixed to higher, with rising coronavirus concerns offset by optimism for further stimulus. The European markets were down and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The Hang Seng finished sharply lower on Tuesday following losses from the financials and oil insurance companies - while the properties were mixed and the casinos offered strong support.

For the day, the index dropped 294.23 points or 1.14 percent to finish at 25,477.89 after trading between 25,254.32 and 25,663.16.

Among the actives, Galaxy Entertainment surged 6.10 percent, while Sands China soared 5.03 percent, China Life Insurance plummeted 3.44 percent, AAC Technologies plunged 3.29 percent, Tencent Holdings tanked 2.96 percent, Hengan International spiked 2.25 percent, CNOOC tumbled 1.80 percent, AIA Group skidded 1.67 percent, China Petroleum and Chemical (Sinopec) retreated 1.46 percent, CSPC Pharmaceutical declined 1.35 percent, China Mobile surrendered 1.27 percent, New World Development dropped 1.25 percent, WH Group jumped 1.23 percent, Hong Kong & China Gas sank 1.03 percent, Ping An Insurance shed 1.02 percent, Industrial and Commercial Bank of China lost 1.01 percent, Wharf Real Estate added 0.76 percent, China Resources Land fell 0.72 percent, Sun Hung Kai Properties gained 0.51 percent, Henderson Land rose 0.50 percent, Techtronic Industries and Hang Lung Properties both slid 0.49 percent, CITIC dipped 0.26 percent, BOC Hong Kong was down 0.22 percent, China Mengniu Dairy rose 0.14 percent and Power Assets was unchanged.

The lead from Wall Street is broadly positive as stocks rebounded on Tuesday from the sharp pullback in the previous session.

The Dow surged 556.79 points or 2.13 percent to finish at 26,642.59, while the NASDAQ jumped 97.73 points or 0.94 percent to end at 10,488.58 and the S&P 500 rose 42.30 points or 1.34 percent to close at 3,197.52.

The spike by the Dow was partly attributed to traders transitioning out of big-name tech stocks and into more cyclical stocks like Caterpillar (CAT), which led the blue chip index higher with a 4.8 percent jump.

Strong gains by energy giants Chevron (CVX) and Exxon Mobil (XOM) also contributed to the advance by the Dow, reflecting strength in the broader energy sector.

Investors shrugged off a surge in new coronavirus cases, even though several U.S. states are likely to resort to another lockdown. Already, California Governor Gavin Newscom has ordered the reintroduction of coronavirus-related restrictions, aiming to contain the spread of the pandemic.

Crude oil futures were higher on Tuesday, with traders weighing global crude supply and demand positions ahead of today's OPEC meeting. West Texas Intermediate Crude oil futures for August ended up $0.19 or 0.5 percent at $40.29 a barrel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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