Markets

Hong Kong Stock Market Expected To Open Under Pressure Again

(RTTNews) - The Hong Kong stock market turned emphatically lower again on Monday, one session after ending the four-day losing streak in which it had plummeted more than 1,530 points or 6 percent. The Hang Seng Index now sits just beneath the 24,100-point plateau and it's tipped to open in the red again on Tuesday.

The global forecast for the Asian markets is negative on sinking crude oil prices and on the outlook for interest rates. The European and U.S. markets were sharply lower and the Asian bourses figure to follow suit.

The Hang Seng finished with huge losses as the property sector was absolutely ravaged, while the oil, finance and technology stocks also suffered.

For the day, the index plummeted 821.62 points or 3.30 percent to finish at 24,099.14 after trading between 23,871.84 and 24,640.43.

Among the actives, AAC Technologies dipped 1.75 percent, while AIA Group declined 4.94 percent, Alibaba Group slid 2.19 percent Alibaba Health Info and Industrial and Commercial Bank of China both sank 3.00 percent, ANTA Sports skidded 5.11 percent, China Life Insurance weakened 3.86 percent, China Mengniu Dairy slipped 1.70 percent, China Petroleum and Chemical (Sinopec) gave away 1.55 percent, China Resources Land lost stumbled 2.63 percent, CITIC shed 2.86 percent, CNOOC dropped 2.97 percent, Country Garden tanked 9.53 percent, CSPC Pharmaceutical fell 2.49 percent, Galaxy Entertainment added 0.50 percent, Hang Lung Properties retreated 5.04 percent, Henderson Land cratered 13.19 percent, Hong Kong & China Gas sank 1.30 percent, Li Ning tumbled 8.15 percent, Longfor surrendered 4.15 percent, Meituan lost 2.57 percent, New World Development plummeted 13.19 percent, Sands China rose 0.13 percent, Sun Hung Kai Properties plunged 10.34 percent, Techtronic Industries eased 0.31 percent, Xiaomi Corporation was down 0.87 percent and WuXi Biologics slumped 1.46 percent.

The lead from Wall Street is unfriendly as the major averages opened lower on Monday and sank deeper into the red as the day progressed, ending near session lows.

The Dow plunged 614.41 points or 1.78 percent to finish at 33,970.47, while the NASDAQ plummeted 330.06 points or 2.19 percent to close at 14,713.90 and the S&P 500 dropped 75.26 points or 1.70 percent to end at 4,357.73.

The weakness on Wall Street came as traders look ahead to the Federal Reserve's highly anticipated monetary policy announcement on Wednesday. The Fed is widely expected to leave monetary policy unchanged but could address the outlook for its asset purchase program.

The minutes of the Fed's last meeting signaled the central bank was prepared to begin scaling back asset purchases by the end of the year. With some recent disappointing economic data suggesting the Fed could push back its plans, traders will pay close attention to the wording of the post-meeting statement.

Crude oil prices declined sharply on Monday as worries about a likely slowdown in global economic growth raised concerns about the outlook for energy demand. West Texas Intermediate Crude oil futures for October ended down by $1.68 or 2.3 percent at $70.29 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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