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Hong Kong Stock Market Due For Recovery

The Hong Kong stock market has moved lower in three straight sessions, sliding almost 850 points or 3.3 percent along the way. The Hang Seng Index now rests just above the 25,280-point plateau - and while it has a positive lead for Wednesday, domestic unrest could keep the market in the red.

The global forecast for the Asian markets is broadly positive on an improved outlook for trade between the United States and China, and the resulting surge in crude oil prices. The European and U.S. markets were firmly higher and the Asian bourses are expected to open in similar fashion.

The Hang Seng finished sharply lower on Tuesday with damage across the board, exacerbated by growing protests against Chinese policies.

For the day, the index plummeted 543.42 points or 2.10 percent to finish at 25,281.30 after trading between 25,270.91 and 25,616.71.

Among the actives, Galaxy Entertainment plummeted 5.84 percent, while BOC Hong Kong plunged 3.95 percent, Sands China tumbled 3.59 percent, AIA Group skidded 2.97 percent, Henderson Land retreated 2.81 percent, CSPC Pharmaceutical declined 2.44 percent, Hong Kong & China Gas contracted 2.37 percent, China Mobile dropped 2.25 percent, CITIC sank 2.23 percent, CNOOC shed 2.05 percent, WH Group lost 2.04 percent, Industrial and Commercial Bank of China fell 2.01 percent, China Petroleum and Chemical (Sinopec) slid 1.71 percent, China Life Insurance dipped 1.45 percent and Ping An Insurance eased 0.63 percent.

The lead from Wall Street is firmly upbeat as stocks moved higher early Tuesday and only got stronger as the day progressed.

The Dow climbed 372.54 points or 1.44 percent to 26,279.91, while the NASDAQ surged 152.95 points or 1.95 percent to 8,016.36 and the S&P 500 jumped 42.57 points or 1.48 percent to 2,926.32.

The rally on Wall Street came after U.S. Trade Representative Robert Lighthizer offered a temporary reprieve in the U.S.-China trade war by announcing a delay in imposing new tariffs on certain Chinese products. Lighthizer said the 10 percent tariff set to take effect on September 1 will be delayed until December 15 for certain products.

The announcement comes less than two weeks after President Donald Trump announced plans to impose a 10 percent tariff on the remaining $300 billion worth of Chinese imports, sparking a sell-off on Wall Street.

In U.S. economic news, the Labor Department said consumer prices rose in line with estimates in July, although the report also showed another bigger than expected increase in core consumer prices.

Crude oil prices shook off early weakness and posted a modest recovery on Tuesday following news of the delay in tariffs. West Texas Intermediate climbed $2.42 or 4.42 percent to $57.20 after the trade announcement after moving as low as $54.78 earlier in the day.

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