Hong Kong Stock Market May See Technical Rebound On Wednesday

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(RTTNews) – The Hong Kong stock market has fallen lower in nine straight sessions, plummeting more than 1,100 points or 4.4 percent along the way. The Hang Seng Index now rests just above the 24,650-point plateau and it’s overdue for support on Wednesday.

The global forecast for the Asian markets is mixed, with support from oil and financial stocks likely to be undercut by weakness from technology shares. The European markets were down and the U.S. bourses were mixed and the Asian markets figure to follow the latter lead.

The Hang Seng finished sharply lower again on Tuesday following losses from the financials, properties, oil companies and technology stocks.

For the day, the index plunged 299.76 points or 1.20 percent to finish at 24,651.58 after trading between 24,618.74 and 24,794.72.

Among the actives, AAC Technologies improved 0.13 percent, while AIA Group was down 0.29 percent, Alibaba Group retreated 2.99 percent, Alibaba Health Info tanked 4.27 percent, ANTA Sports plunged 4.76 percent, China Mengniu Dairy dropped 0.87 percent, China Petroleum and Chemical (Sinopec) added 0.83 percent, China Resources Land and Hong Kong & China Gas both advanced 0.86 percent, CITIC jumped 1.38 percent, CNOOC slid 0.63 percent, Country Garden and New World Development both gained 0.29 percent, CSPC Pharmaceutical skidded 1.84 percent, Galaxy Entertainment gathered 0.21 percent, Hang Lung Properties eased 0.12 percent, Henderson Land fell 0.73 percent, Industrial and Commercial Bank of China dipped 0.47 percent, Li Ning plummeted 5.42 percent, Longfor rose 0.25 percent, Meituan declined 3.14 percent, Sands China lost 0.74 percent, Sun Hung Kai Properties shed 0.80 percent, Techtronic Industries surrendered 3.37 percent, Xiaomi Corporation sank 0.96 percent, WuXi Biologics tumbled 4.16 percent and China Life Insurance was unchanged.

The lead from Wall Street remains inconsistent as the Dow and S&P spent Tuesday bouncing back and forth across the unchanged line before ending higher. The NASDAQ spent most of the session in the red and finished that way.

The Dow jumped 194.55 points or 0.55 percent to finish at 35,813.80, while the NASDAQ slipped 79.62 points or 0.50 percent to close at 15,775.14 and the S&P 500 rose 7.76 points or 0.17 percent to end at 4,690.70.

The tech-heavy NASDAQ pulled back further off the record intraday high set in early trading on Monday, as a continued increase in treasury yields weighed on high-growth tech stocks.

Yields have moved notably higher since President Joe Biden announced his intention to nominate Jerome Powell for a second term as Fed Chair. With the upward move, the yield on the benchmark ten-year note ended at its highest closing level in a month.

On the other hand, the Dow benefited from strong gains by financial giants Goldman Sachs (GS) and JPMorgan Chase (JPM).

Crude oil futures settled sharply higher on Tuesday, rebounding strongly from earlier losses over the outlook for energy demand due to rising coronavirus cases in Europe, and plans by the U.S. to release oil from the Strategic Petroleum Reserve. West Texas Intermediate Crude oil futures for January still ended higher by $1.75 or 2.3 percent at $78.50 a barrel.