Hong Kong Bourse May Test Support At 26,000 Points

(RTTNews) - The Hong Kong stock market has finished lower in back-to-back sessions, plummeting more than 600 points or 2.3 percent along the way. The Hang Seng Index now rests just shy of the 26,350-point plateau and it's got another soft lead for Monday's trade.

The global forecast for the Asian markets is negative thanks to unrest in Hong Kong and how it may delay any resolution in the trade spat between the United States and China. The European and U.S. markets were down on Friday and the Asian bourses are tipped to open in similar fashion.

The Hang Seng finished sharply lower with damage across the board, although the financials and oil companies were hit especially hard.

For the day, the index plunged 547.24 points or 2.03 percent to finish at 26,346.49 after trading between 26,308.10 and 26,705.38.

Among the actives, CSPC Pharmaceutical cratered 9.73 percent, while CNOOC plummeted 3.24 percent, CITIC plunged 2.97 percent, WH Group tumbled 2.90 percent, Industrial and Commercial Bank of China skidded 2.79 percent, Galaxy Entertainment retreated 2.57 percent, China Petroleum and Chemical (Sinopec) and China Mengniu Dairy both declined 2.44 percent, AAC Technologies dropped 2.31 percent, AIA Group sank 2.24 percent, China Mobile shed 2.16 percent, China Life Insurance lost 2.08 percent, New World Development fell 1.92 percent, Tencent Holdings and Ping An Insurance both slid 1.83 percent, BOC Hong Kong dipped 1.48 percent, Sands China was down 0.94 percent and Hong Kong & China Gas eased 0.80 percent.

The lead from Wall Street is soft as stocks gave ground in Friday's shortened session retreating from Wednesday's record closing highs.

The Dow shed 112.59 points or 0.40 percent to 28,051.41, while the NASDAQ lost 39.70 points or 0.46 percent to 8,665.47 and the S&P 500 fell 12.65 points or 0.40 percent to 3,140.98. For the week, the NASDAQ surged 1.7 percent, the S&P jumped 1 percent and the Dow rose 0.6 percent.

The weakness on Wall Street came as traders cashed in on recent gains amid concerns rising tensions between the U.S. and China over the situation in Hong Kong could impact ongoing trade talks.

After President Donald Trump signed two bills in support of pro-democracy protesters in Hong Kong, a spokesman for China's Foreign Ministry threatened strong countermeasures.

After moving higher in the two previous sessions, crude oil prices showed a substantial pullback on Friday on rising tensions between the U.S. and China. Crude for January delivery plunged $2.94 or 5.1 percent to $55.17 a barrel, ending at its lowest closing level in a month.

Closer to home, Hong Kong will release October numbers for retail sales later today; in September, sales plummeted 20.4 percent on year.

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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