Plus   Neg

Renewed Selling Pressure Likely For Hong Kong Shares

The Hong Kong stock market had alternated between positive and negative finishes through the last nine trading days since the end of the six-day losing streak in which it had tumbled almost 1,140 points or 3.9 percent. The Hang Seng Index now rests just beneath the 25,900-point plateau although it's predicted to open in the red on Wednesday.

The global forecast for the Asian markets is broadly negative on diminishing hopes for a resolution to the trade dispute between the United States and China. The European and U.S. bourses were sharply lower and the Asian markets are expected to open in similar fashion.

The Hang Seng finished modestly higher on Tuesday as gains from the financials and insurance companies were capped by weakness from the property sector.

For the day, the index gained 72.37 points or 0.28 percent to finish at 25,893.40 after trading between 25,761.50 and 26,180.03.

Among the actives, CSPC Pharmaceutical surged 6.88 percent, while New World Development plummeted 2.50 percent, Sands China plunged 2.12 percent, China Mengniu Dairy soared 2.00 percent, Industrial and Commercial Bank of China and Hang Lung Properties both spiked 1.36 percent, Sun Hung Kai Properties tumbled 1.08 percent, Galaxy Entertainment skidded 1.03 percent, Ping An Insurance collected 0.89 percent, Sino Land and Power Assets both dropped 0.85 percent, AIA Group jumped 0.54 percent, CITIC sank 0.50 percent, China Petroleum and Chemical (Sinopec) slid 0.43 percent, Tencent Holdings climbed 0.31 percent, WH Group advanced 0.29 percent, Hong Kong & China Gas shed 0.26 percent, BOC Hong Kong lost 0.19 percent, Techtronic Industries rose 0.19 percent, China Mobile was up 0.15 percent and China Life Insurance and CNOOC were unchanged.

The lead from Wall Street is weak as stocks opened lower on Tuesday, rebounded slightly but then headed firmly into the red at the close.

The Dow shed 313.98 points or 1.19 percent to 26,164.04, while the NASDAQ sank 132.52 points or 1.67 percent to 7,823.78 and the S&P fell 45.73 points or 1.56 percent to 2,893.06.

Selling pressure re-emerged late in the session after the Trump administration imposed visa restrictions on Chinese officials over abuses of Muslim minorities in the Xinjiang region. The new visa restrictions come just two days before the U.S. and China are scheduled to resume high-level trade talks in Washington.

Traders largely shrugged off a Labor Department report showing an unexpected decrease in U.S. producer prices in September - which may clear the way for the Federal Reserve to continue cutting interest rates amid signs of slowing economic growth.

Crude oil futures ended lower on Tuesday as fading optimism about U.S.-China trade talks weighed on prospects for near term energy demand. West Texas Intermediate Crude oil futures for November ended down $0.12 or 0.2 percent at $52.63 a barrel.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT