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Hong Kong Bourse May Extend Friday's Losses

The Hong Kong stock market on Friday wrote a finish to the six-day winning streak in which it had soared more than 1,450 points or 4.8 percent. The Hang Send Index now rests just beneath the 30,960-point plateau and it may see continued consolidation on Monday.

The global forecast for the Asian markets is uncertain, with higher closes from Europe and the United Sates overshadowed by renewed concerns of a trade war after a contentious G7 meeting. A fall in crude oil prices adds to the soft sentiment.

The Hang Seng finished sharply lower on Friday with damage across the board - particularly among the financial shares and oil and insurance companies.

For the day, the index plummeted 554.42 points or 1.76 percent to finish at 30,958.21 after trading between 30,874.10 and 31,435.26.

Among the actives, Tencent Holdings plummeted 3.31 percent, while AAC Technologies plunged 3.20 percent, New World Development tumbled 2.58 percent, AIA Group skidded 2.44 percent, China Mengniu Dairy dropped 2.38 percent, China Mobile retreated 2.32 percent, WH Group declined 2.23 percent, CSPC Pharmaceutical slid 2.01 percent, China Petroleum and Chemical (Sinopec) shed 1.97 percent, CNOOC lost 1.93 percent, Industrial and Commercial Bank of China fell 1.79 percent, Ping An Insurance was down 1.32 percent, China Life dipped 1.08 percent, Galaxy Entertainment shed 0.85 percent and Hong Kong & China Gas eased 0.13 percent.

The lead from Wall Street is positive as stocks opened lower Friday but rebounded as the day progressed. With the turnaround, the Dow and the S&P hit their best closing levels in three months.

The Dow climbed 75.12 points or 0.30 percent to 25,316.53, the NASDAQ gained 10.44 points or 0.14 percent to 7,645.51 and the S&P rose 8.66 points or 0.31 percent to 2,779.03. For the week, the Dow soared 2.8 percent, the S&P surged 1.6 percent and the NASDAQ jumped 1.2 percent.

The rebound by stocks came as traders kept a close eye on any developments out of the G7 summit in Canada.

The summit focused on trade relations amid the ongoing dispute over President Donald Trump imposing tariffs on steel and aluminum imports from Canada, Mexico, and the European Union.

Crude oil inched lower Friday as the dollar strengthened on safe have demand amid a breakdown in trade relations between the U.S. and its closest allies. West Texas Intermediate oil for July fell 21 cents or 0.3 percent to $65.74/bbl.

by RTTNews Staff Writer

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