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Higher Open Expected For Hong Kong Stock Market

The Hong Kong stock market on Friday snapped the two-day slide in which it had fallen more than 730 points or 2.6 percent. The Hang Seng Index now rests just above the 26,325-point plateau and it's predicted to add to its winnings on Monday.

The global forecast for the Asian markets is firm on growing optimism for a resolution in the trade dispute between the United States and China. The European and U.S. markets were up on Friday and the Asian bourses are tipped to follow suit.

The Hang Seng finished barely higher on Friday following weakness from the oil companies and mixed performances from the financials and properties.

For the day, the index rose 2.96 points or 0.01 percent to finish at 26,326.66 after trading between 26,300.08 and 26,544.65.

Among the actives, AAC Technologies surged 1.79 percent, while CSPC Pharmaceutical plummeted 1.42 percent, WH Group soared 1.31 percent, Sino Land plunged 1.06 percent, China Mengniu Dairy spiked 0.85 percent, CITIC tumbled 0.79 percent, AIA Group accelerated 0.79 percent, Industrial and Commercial Bank of China collected 0.72 percent, Wharf Real Estate jumped 0.60 percent, Sun Hung Kai Properties skidded 0.56 percent, CNOOC dropped 0.33 percent, China Life Insurance sank 0.24 percent, China Petroleum and Chemical (Sinopec) shed 0.23 percent, New World Development added 0.19 percent, Galaxy Entertainment and BOC Hong Kong both lost 0.19 percent, Hong Kong & China Gas and Sands China both fell 0.13 percent, Ping An Insurance dipped 0.11 percent and China Mobile was unchanged.

The lead from Wall Street is positive as stocks showed a strong upward move, sending the major averages to fresh record closing highs.

The Dow added 222.93 points or 0.93 percent to 28.004.89, while the NASDAQ gained 61.81 points or 0.73 percent to 8,540.83 and the S&P 500 rose 23.83 points or 0.77 percent to 3,120.46. For the week, the Dow jumped 1.2 percent, the NASDAQ climbed 0.8 percent and the S&P was up 0.9 percent.

The strength on Wall Street came amid renewed optimism about a U.S.-China trade deal following comments from White House officials. Also, China has lifted a nearly five-year ban on imports of U.S. poultry in a goodwill gesture that could lead to more than $1 billion in annual shipments to China.

In economic news, the Commerce Department said U.S. retail sales rebounded slightly more than expected in October, while the Federal Reserve noted a steep drop in industrial output last month.

Crude oil prices ended sharply higher Friday on renewed optimism about a potential U.S.-China trade deal and hopes the OPEC might decide to deepen its supply cuts. West Texas Intermediate Crude oil futures for December ended up $0.95 or 1.7 percent at $57.72 a barrel.

Closer to home, Hong Kong sill see October figures for unemployment later today; in September, the jobless rate was 2.9 percent.

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