Hong Kong Bourse Overdue For Profit Taking
(RTTNews) - The Hong Kong stock market has finished higher in four straight sessions, accelerating almost 1,050 points or 3.7 percent along the way. The Hang Seng Index now rests just above the 27,680-point plateau although it's likely to see some consolidation on Wednesday.
The global forecast for the Asian markets is murky thanks to ambiguity regarding trade and interest rates. The European markets were slightly higher and the U.S. bourses were mixed and little changed and the Asian markets figure to see little movement as well.
The Hang Seng finished modestly higher on Tuesday following gains from the oil and insurance companies and the casinos.
For the day, the index gained 136.10 points or 0.49 percent to finish at 27,683.40 after trading between 27,463.33 and 27,733.07.
Among the actives, AAC Technologies surged 2.43 percent, while CNOOC soared 2.12 percent, CSPC Pharmaceutical plummeted 1.92 percent, China Petroleum and Chemical (Sinopec) spiked 1.75 percent, China Life Insurance accelerated 1.68 percent, Tencent Holdings jumped 1.65 percent, New World Development climbed 1.41 percent, WH Group advanced 1.27 percent, Galaxy Entertainment gathered 1.18 percent, China Resources Land perked 1.16 percent, BOC Hong Kong added 1.08 percent, Ping An Insurance increased 0.70 percent, Sands China gained 0.63 percent, China Mobile rose 0.55 percent, Hong Kong & China Gas shed 0.39 percent, CITIC lost 0.38 percent, AIA Group was up 0.30 percent and Industrial and Commercial Bank of China dipped 0.17 percent.
The lead from Wall Street offers little clarity as stocks showed a lack of direction on Tuesday, bouncing back and forth across the unchanged line before ending mixed.
The Dow added 30.52 points or 0.11 percent to 27,492.63, while the NASDAQ rose 1.48 points or 0.02 percent to 8,434.60 and the S&P 500 fell 3.65 points or 0.12 percent to 3,074.62.
The early strength on Wall Street came amid continued optimism about a potential U.S.-China trade deal, with President Donald Trump and Chinese President Xi Jinping expected to sign phase one of an agreement sometime this month.
Buying interest was subdued, however, as traders wait for more concrete developments before continuing to buy stocks following the recent run to record highs.
But stocks ebbed following a report from the Institute for Supply Management showing better than expected growth in the U.S. service sector in October. The data raised concerns about the outlook for interest rates after the Federal Reserve said last week it's putting further rate cuts on hold.
Crude oil for December delivery is extending to recent gains on continued optimism about the outlook for global demand. West Texas Intermediate advanced $0.70 or 1.24 percent to $57.22.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.