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Hong Kong Shares May See Positive Bounce

The Hong Kong stock market on Wednesday halted the three-day winning streak in which it had collected almost 450 points or 1.7 percent. The Hang Seng Index now rests just beneath the 27,900-point plateau, although it may rebound on Thursday.

The global forecast for the Asian markets is mildly positive, again riding continued strength from crude oil prices. The European and U.S. markets were slightly higher and the Asian markets figure to follow suit.

The Hang Seng finished modestly lower on Wednesday as losses from the financials and oil companies were mitigated by support from the properties and casinos.

For the day, the index slid 78.16 points or 0.28 percent to finish at 27,984.08 after trading between 27,751.28 and 27,984.27.

Among the actives, Galaxy Entertainment surged 2.40 percent, while Hang Lung Properties skidded 2.02 percent, Sands China spiked 1.88 percent, Sun Hung Kai Properties climbed 1.48 percent, Industrial and Commercial Bank of China dropped 1.37 percent, China Life tumbled 1.23 percent, China Petroleum and Chemical (Sinopec) shed 1.16 percent, Henderson Land jumped 1.05 percent, China Resources Land lost 0.80 percent, China Mobile fell 0.54 percent, Ping An Insurance added 0.40 percent, CNOOC dipped 0.33 percent, New World Development gained 0.35 percent and Lenovo Group eased 0.23 percent.

The lead from Wall Street suggests mild upside as stocks wound up slightly higher on Wednesday, bouncing back and forth across the unchanged line before finishing slightly higher at fresh record closing highs.

The Dow added 39.32 points or 0.18 percent to 22,158.18, while the NASDAQ gained 5.91 points or 0.09 percent to 6,460.19 and the S&P was up 1.89 points or 0.08 percent to 2,498.37.

The choppy trading came amidst uncertainty about the near-term outlook for the markets following recent strength. Traders also stuck to the sidelines ahead of key economic data later this week.

Traders kept an eye on Washington, where House Speaker Paul Ryan, R-Wis., said Republicans will release an outline of their tax reform plan the week of September 25th.

Energy stocks saw considerable strength, with an increase by the price of crude oil generating buying interest. Crude oil for October delivery jumped $1.07 to $49.30 a barrel.

Closer to home, Hong Kong will release Q2 figures for industrial production and producer prices later today.

In the three months prior, industrial output added 0.2 percent on quarter and fell 1.0 percent on year, while producer prices jumped an annual 4.2 percent.

by RTT Staff Writer

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