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Hong Kong Market Ripe For Bargain Hunting

The Hong Kong stock market has finished lower in three straight sessions, slipping almost 600 points or 2 percent along the way. The Hang Seng Index now rests just above the 30,315-point plateau although it figures to rebound on Tuesday.

The global forecast for the Asian markets is cautiously optimistic as easing geopolitical concerns were offset by sliding oil prices. The European markets were mixed and the U.S. bourses were higher, and the Asian markets figure to split the difference.

The Hang Seng finished sharply lower on Monday following losses from the financials, casinos, properties and insurance and oil companies.

For the day, the index tumbled 492.79 points or 1.60 percent to finish at 30,315.59 after trading between 30,190.75 and 30,849.72.

Among the actives, AIA Group plummeted 3.97 percent, while Galaxy Entertainment plunged 2.96 percent, China Resources Land tumbled 2.89 percent, Industrial and Commercial Bank of China skidded 2.35 percent, Ping An Insurance dropped 1.97 percent, WH Group declined 1.78 percent, BOC Hong Kong spiked 1.73 percent, New World Development retreated 1.56 percent, China Mengniu Dairy advanced 1.47 percent, Lenovo Group shed 1.24 percent, Tencent Holdings lost 1.23 percent, Sands China fell 1.13 percent, China Petroleum and Chemical (Sinopec) was down 1.08 percent, China Life slid 0.69 percent, Hong Kong & China Gas dipped 0.25 percent and CNOOC eased 0.16 percent.

The lead from Wall Street is positive as stocks moved higher on Monday, reacting to positive earnings and economic news while extending last week's gains.

The Dow added 212.90 points or 0.87 percent to 24,573.04, while the NASDAQ gained 49.63 points or 0.70 percent to 7,156.28 and the S&P climbed 21.54 points or 0.81 percent to 2,677.84.

The strength reflected a positive reaction to earnings news from financial giant Bank of America (BAC), which beat Q1 forecasts.

In economic news, the Commerce Department noted stronger than expected retail sales growth in March. Also, the National Association of Home Builders saw a modest drop in homebuilder confidence in April.

Stocks remained positive in the afternoon after President Donald Trump said he intends to nominate Richard Clarida as Federal Reserve Vice Chairman.

Crude oil prices fell Monday after data showed the shale sector is expected to rise by 125,000 barrels a day in May. June WTI oil settled at $66.22/bbl on Nymex, down $1.17 or 1.7 percent. Prices tumbled from last week's three-year peak.

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