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Overbought Hang Seng Still Called Higher

The Hong Kong stock market has moved higher in six straight sessions, soaring almost 1,300 points along the way. The Hang Seng Index now rests just above the 30,510-point plateau and it's tipped to find continued support on Wednesday.

The global forecast for the Asian markets is upbeat thanks to optimism about the outlook for the markets and the economy going into the new year. The European markets were down and the U.S. markets were up and the Asian bourses figure to follow the latter lead.

The Hang Seng finished sharply higher on Tuesday following gains from the financials, oil companies and properties, while the casinos were soft.

For the day, the index surged 596.16 points or 1.99 percent to finish at the daily high of 30,515.31 after moving as low as 30,028.29.

Among the actives, Ping An Insurance surged 4.49 percent, while Galaxy Entertainment plummeted 3.99 percent, China Petroleum and Chemical (Sinopec) soared 3.14 percent, Industrial and Commercial Bank of China spiked 3.02 percent, Kunlun Energy advanced 2.83 percent, CNOOC perked 2.67 percent, China Life jumped 2.65 percent, Sands China plunged 2.11 percent, Li & Fung tumbled 1.63 percent, Henderson Land climbed 1.36 percent, New World Development added 1.02 percent, Lenovo Group gained 0.45 percent and Hong Kong & China Gas eased 0.13 percent.

The lead from Wall Street is positive as stocks showed an early move to the upside Tuesday and stayed that way throughout the session.

The Dow added 104.79 points or 0.42 percent to 24,824.01, while the NASDAQ surged 103.51 points or 1.50 percent to 7,006.90 and the S&P gained 22.20 points or 0.83 percent to 2,695.81.

Trading activity was subdued, however, with a lack of major U.S. economic data keeping traders on the sidelines.

The economic calendar for the week starts off relatively quiet, although the closely watched monthly jobs report is likely to attract considerable attention on Friday.

Crude oil futures were flat Tuesday, holding near the highest in more than two years as a spate of ultra-cold weather may drive demand for heating oil and other energy products. February WTI oil fell 5 cents or 0.1 percent to $60.37/bbl.

Closer to home, Hong Kong will see November numbers for retail sales later today; in October, sales advanced 3.6 percent on year.

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