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Hong Kong Market May Test Resistance At 28,000 Points

The Hong Kong stock market has finished higher in back-to-back sessions, accelerating more than 580 points or 2.1 percent along the way. The Hang Seng Index now rests just above the 27,820-point plateau and it may see additional support again on Thursday.

The global forecast for the Asian markets is upbeat on easing coronavirus fears and rising crude oil prices. The European and U.S. markets were up and the Asian bourses are tipped to follow suit.

The Hang Seng finished modestly higher on Wednesday following gains from the financial shares and oil and insurance companies.

For the day, the index spiked 239.78 points or 0.87 percent to finish at 27,823.66 after trading between 27,614.83 and 27,892.48.

Among the actives, Galaxy Entertainment skyrocketed 4.40 percent, while Sands China surged 3.84 percent, Techtronic Industries soared 3.42 percent, AAC Technologies accelerated 2.21 percent, WH Group spiked 2.11 percent, China Life Insurance jumped 1.75 percent, AIA Group climbed 1.50 percent, BOC Hong Kong gathered 1.10 percent, CITIC perked 1.07 percent, China Resources Land and New World Development both advanced 0.98 percent, CNOOC added 0.97 percent, China Petroleum and Chemical (Sinopec) gained 0.95 percent, China Mengniu Dairy rose 0.67 percent, Hengan International shed 0.64 percent, Industrial and Commercial Bank of China collected 0.54 percent, Hong Kong & China Gas and Power Assets both increased 0.53 percent, Tencent Holdings was up 0.49 percent, Sino Land fell 0.37 percent, CSPC Pharmaceutical gained 0.31 percent, Ping An Insurance fell 0.27 percent and China Mobile was unchanged.

The lead from Wall Street is positive as stocks made a strong move to the upside on Wednesday, adding to the modest gains in the previous session and sending the major averages to new record closing highs.

The Dow added 275.08 points or 0.94 percent to end at 29,551.42, while the NASDAQ rose 87.02 points or 0.90 percent to 9,725.96 and the S&P 500 gained 21.70 points or 0.65 percent to 3,379.45.

The rally on Wall Street came as traders pushed stocks to new record highs despite concerns about the economic impact of the coronavirus outbreak; a recent slowdown in the rate of growth in new infections has led to optimism the outbreak is being contained.

Traders also kept an eye on Federal Reserve Chairman Jerome Powell's testimony before the Senate Banking Committee. Powell said the Fed is closely monitoring the coronavirus outbreak but also highlighted the resilience of the U.S. economy.

Despite a jump in U.S. crude stockpiles last week, crude oil prices moved up sharply on Wednesday amid expectations that OPEC will significantly cut crude production. West Texas Intermediate Crude oil futures for March ended up $1.23 or 2.5 percent at $51.17 a barrel.

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