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Bargain Hunting Expected To Boost Hong Kong Shares

The Hong Kong stock market turned emphatically lower again on Tuesday, one session after it had halted the two-day slide in which it had fallen more than 950 points or 3.3 percent. The Hang Seng Index now rests just above the 28,120-point plateau, although it figures to rebound on Wednesday.

The global forecast for the Asian markets is positive on bargain hunting, rising crude oil prices and optimism that the United States and China will reach a trade agreement. The European and U.S. markets were up and the Asian bourses are tipped to open in similar fashion.

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

For the day, the index plunged 428.22 points or 1.50 percent to finish at 28,122.02 after trading between 27,925.62 and 28,205.96.

Among the actives, Galaxy Entertainment plummeted 5.24 percent, while Sands China plunged 4.95 percent, WH Group tumbled 4.03 percent, Techtronic Industries skidded 3.63 percent, Tencent Holdings retreated 2.98 percent, AIA Group declined 2.89 percent, China Life dropped 2.15 percent, China Petroleum and Chemical (Sinopec) sank 1.92 percent, Hong Kong & China Gas advanced 1.71 percent, New World Development shed 1.59 percent, BOC Hong Kong and China Mengniu Dairy both lost 1.52 percent, CNOOC fell 1.49 percent, Ping An Insurance slid 1.35 percent, Industrial and Commercial Bank of China dipped 1.27 percent, CSPC Pharmaceutical was down 0.87 percent and China Mobile, CITIC Limited and Hang Lung Properties were unchanged.

The lead from Wall Street is firm as stocks opened higher on Tuesday and remained in the green throughout the session, offsetting the losses from the previous day.

The Dow added 207.06 points or 0.82 percent to end at 25,532.05, while the NASDAQ jumped 87.47 points or 1.14 percent to 7,734.49 and the S&P 500 rose 22.54 points or 0.80 percent to 2,834.41.

Bargain hunting has contributed to the rebound on Wall Street, with traders picking up stocks at reduced levels following Monday's sell-off.

The markets are also benefiting from optimism the U.S. and China will eventually reach a trade deal despite the retaliatory tariffs announced by China.

President Donald Trump has continued to express confidence the Chinese will yield to U.S. demands, repeatedly arguing that the U.S. is in a stronger position than China in the negotiations.

Crude oil prices moved higher on Tuesday amid supply concerns and slightly easing worries about energy demand after the U.S. and China struck a conciliatory tone on trade talks. West Texas Intermediate Crude oil futures for June ended up $0.74 or 1.2 percent at $61.78 a barrel.

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