logo
Plus   Neg
Share
Email
Comment

Hong Kong Bourse May Extend Losing Streak

The Hong Kong stock market has moved lower in back-to-back trading days, sliding almost 290 points or 0.9 percent along the way. The Hang Seng Index now rests just above the 32,600-point plateau and it's expected to open under pressure again on Monday.

The global forecast for the Asian markets is broadly negative over concerns for the outlook on interest rates. The European and U.S. markets were sharply lower on Friday and the Asian markets figure to follow that lead.

The Hang Seng finished slightly lower on Friday as losses from the properties, financials and casinos were offset by support from the oil companies.

For the day, the index skidded 40.31 points or 0.12 percent to finish at 32,601.78 after trading between 32,321.42 and 32,778.51.

Among the actives, CNOOC surged 4.80 percent, while China Petroleum and Chemical (Sinopec) soared 3.88 percent, Kunlun Energy spiked 2.32 percent, Galaxy Entertainment plummeted 2.01 percent, Lenovo Group plunged 1.82 percent, Sands China tumbled 1.44 percent, Sun Hung Kai Properties skidded 0.97 percent, New World Development dropped 0.80 percent, China Life jumped 0.76 percent, Ping An Insurance shed 0.44 percent, Hong Kong & China Gas lost 0.26 percent, BOC Hong Kong fell 0.25 percent and Industrial and Commercial Bank of China was unchanged.

The lead from Wall Street is brutal as stocks moved sharply lower on Friday as traders worried about the prospect of higher interest rates - extending the pullback last week's record highs.

The Dow tumbled 665.75 points or 2.54 percent to 25,520.96, the NASDAQ slumped 144.92 points or 1.96 percent to 7,240.95 and the S&P 500 fell 59.85 points or 2.12 percent to 2,762.13. For the week, the Dow lost 4.1 percent, the NASDAQ shed 3.5 percent and the S&P plunged 3.9 percent.

The concerns about higher interest rates came after the Labor Department reported stronger than expected job growth and a jump in wages. The Federal Reserve may respond to strong economic growth by hiking interest rates three times in 2018.

A negative reaction to quarterly results from big name tech companies like Google parent Alphabet (GOOGL) and Apple (AAPL) also contributed to the selloff.

Crude oil also responded negatively to the jobs report as WTI for March delivery fell 35 cents to $65.45 per barrel.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Market Analysis

comments powered by Disqus
Follow RTT