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Hong Kong Stock Market Poised To End Losing Streak

The Hong Kong stock market has finished lower in three straight sessions, sinking more than 600 points or 2.4 percent along the way. The Hang Seng Index now sits just above the 24,300-point plateau although it may stop the bleeding on Tuesday.

The global forecast for the Asian markets is upbeat as hopes for a solid economic recovery outweighed a rising number of coronavirus cases worldwide. The European and U.S. markets were up and the Asian bourses are tipped to follow suit.

The Hang Seng finished sharply lower on Monday following losses from the financials, properties, casinos and oil and insurance companies.

For the day, the index dropped 248.71 points or 1.01 percent to finish at 24,301.28 after trading between 2,951.77 and 2,977.91.

Among the actives, CSPC Pharmaceutical plummeted 3.89 percent, while China Mobile plunged 3.00 percent, WH Group tanked 2.69 percent, Sands China tumbled 2.58 percent, Galaxy Entertainment skidded 2.31 percent, AIA Group retreated 2.29 percent, AAC Technologies declined 2.15 percent, China Life Insurance surrendered 1.52 percent, China Resources Land dropped 1.33 percent, CNOOC sank 1.26 percent, Techtronic Industries jumped 1.19 percent, CITIC shed 1.09 percent, Ping An Insurance lost 0.70 percent, BOC Hong Kong fell 0.61 percent, Hong Kong & China gas erased 0.33 percent, China Petroleum and Chemical (Sinopec) slid 0.30 percent, Industrial and Commercial Bank of China and New World Development both eased 0.21 percent and Tencent Holdings rose 0.21 percent.

The lead from Wall Street is broadly positive as stocks shook off a soft open Monday to move solidly into the green, offsetting losses from the previous session.

The Dow surged 580 points or 2.32 percent to finish at 25,595.80, while the NASDAQ spiked 116.93 points or 1.20 percent to end at 9,874.15 and the S&P 500 soared 44.19 points or 1.47 percent to close at 3,053.24.

The soft open on Wall Street was in response to rising numbers of new cases of coronavirus in the U.S. and several other parts across the globe. Data from Johns Hopkins University showed the number of coronavirus cases worldwide has surpassed 10 million, while the global death toll from the pandemic rose to more than 500,000.

But the markets rebounded when the National Association of Realtors said that pending home sales in the United States surged a record 44.3 percent in May. Also, the Dallas Fed's manufacturing index fell less than expected, further stoking optimism for economic recovery.

Crude oil prices climbed higher Monday despite concerns about the outlook for energy demand amid the spike in the virus. West Texas Intermediate crude futures for August ended up $1.21 or 3.1 percent at $39.70 a barrel.

Closer to home, Hong Kong will release May figures for retail sales later today; in April, sales plummeted 37.5 percent on year.

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