The Hong Kong stock market on Wednesday snapped the five-day winning streak in which it had gathered nearly 900 points or 2.3 percent on its way to a one-month closing high. The Hang Seng Index finished below the 21,100-point plateau, although now analysts are forecasting a timely recovery for the market when it opens for business on Thursday.
The global forecast for the Asian markets is cautiously optimistic, thanks to a rebound in the price of oil. Technology and financial stocks also may provide support, while gold stocks may see profit taking as the precious metal comes down from a record high. The European and U.S. markets ended firmly higher, and the Asian markets are also expected to track to the upside.
The Hang Seng finished sharply lower on Wednesday as investors took profit following the recent rally. Telecoms led the market lower, while financial shares and property stocks also ended under pressure.
For the day, the index plunged 312.93 points or 1.46 percent to finish at 21,088.86 after trading between 21,066.69 and 21,214.81 on turnover of 118.81 billion Hong Kong dollars.
Among the decliners, China Mobile shed 3.8 percent, while HSBC lost 1.3 percent, Swire Pacific eased 0.6 percent, China Resources Land fell 1.4 percent, China Overseas Land & Investment was down 1.6 percent, Bank of Communications declined 2 percent and Bank of China retreated 1.5 percent.
Finishing higher, Dongfeng Motor Group added 2.4 percent and Johnson Electric Holdings gained 3.3 percent.
Wall Street puts forth a positive lead as stocks rose by solid margins on Wednesday amid some relief buying. That followed news of continued albeit slower U.S. economic recovery as seen by the Federal Reserve and solid demand for Portugal's bond offerings.
In the afternoon, stocks saw shaky trading but managed to hold on to the bulk of their gains as the Fed's Beige Book stated that the U.S. economy continued its modest expansion, although it noted that a drop-off in the strength of economic data indicated a slower pace of recovery.
The Fed noted that modest economic growth was the most common characterization of overall conditions in the period from mid-July through the end of August. Specifically, the report said consumer spending a saw slight increase on balance, although several districts noted an emphasis on necessities and lower-priced goods. While manufacturing activity also continued to expand, several districts reported a slowdown in the pace of growth.
Early buying interest was generated after the Portuguese government successfully auctioned just over 1 billion euros worth of three and ten-year bonds, with the sales attracting solid demand.
The markets also digested comments from President Barack Obama, who spoke in Ohio regarding his plan to extend tax cuts for the middle class, increase business tax write-offs, and spend an additional $50 billion on infrastructure projects.
In corporate news, British telecom giant Vodafone Plc (VOD) confirmed that it has agreed to sell its entire 3.2 percent interest in China Mobile for 4.3 billion pounds, or $6.6 billion. Vodafone will continue its commercial and technology cooperation with China Mobile. Meanwhile, packaged food company General Mills Inc. (GIS) said it expects its first-quarter results to be in line with its expectations and also reaffirmed its fiscal 2011 adjusted earnings forecast.
The major averages saw considerable volatility in late-session dealing but still managed to close on the upside. The Dow gained 46.32 points or 0.4 percent to end at 10,387.01, the NASDAQ advanced by 19.98 points or 0.9 percent to 2,228.87 and the S&P 500 rose by 7.03 points or 0.6 percent to 1,098.87.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.