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Hong Kong Bourse May Find Traction On Thursday

The Hong Kong stock market has moved lower in two straight sessions, tumbling more than 175 points or 0.6 percent along the way. The Hang Seng Index now rests just beneath the 28,775-point plateau although it may stop the bleeding on Thursday.

The global forecast for the Asian markets suggests mild upside after the U.S. and China signed phase one of their trade deal - although the upside had already largely been priced in. The European markets were mixed and the U.S. bourses were slightly higher and the Asian markets figure to split the difference.

The Hang Seng finished modestly lower on Wednesday following losses from the oil companies and mixed performances from the financial shares and property stocks.

For the day, the index dropped 111.55 points or 0.39 percent to finish at 28,773.59 after trading between 28,619.10 and 28,972.68.

Among the actives, CNOOC plummeted 2.36 percent, while WH Group plunged 2.07 percent, Ping An Insurance tumbled 1.35 percent, AAC Technologies surged 1.24 percent, CSPC Pharmaceutical skidded 0.90 percent, Techtronic Industries jumped 0.86 percent, AIA Group retreated 0.74 percent, New World Development declined 0.55 percent, China Mobile dropped 0.45 percent, China Petroleum and Chemical shed 0.43 percent, China Resources Land advanced 0.41 percent, Tencent Holdings lost 0.40 percent, CITIC sank 0.39 percent, BOC Hong Kong added 0.36 percent, Power Assets fell 0.34 percent, China Mengniu Dairy slid 0.31 percent, Galaxy Entertainment dipped 0.24 percent, China Life Insurance eased 0.22 percent, Sino Land and Industrial and Commercial Bank of China both were down 0.17 percent, Hong Kong & China Gas lost 0.13 percent and Sands China rose 0.11 percent.

The lead from Wall Street is cautiously optimistic as stocks opened higher on Wednesday, faded as the day progressed but still ended in the green.

The Dow added 90.55 points or 0.31 percent to finish at 29,030.22, while the NASDAQ gained 7.37 points or 0.08 percent to 9,258.70 and the S&P 500 rose 6.14 points or 0.19 percent to 3,289.29.

The early strength on Wall Street came as traders awaited the signing of the trade deal between the U.S. and China. But stocks pulled back after the agreement was signed in a ceremony at the White House.

In economic news, the Labor Department noted a modest increase in U.S. producer prices in December. Also, the Federal Reserve's Beige Book said U.S. economic activity generally continued to expand modestly in the final six weeks of 2019.

Crude oil prices drifted lower and settled at a six-week low on Wednesday after data showed a big increase in gasoline and distillate stockpiles last week. West Texas Intermediate Crude oil futures (WTI) for February ended down $0.42 or 0.7 percent at $57.81 a barrel.

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