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Hong Kong Bourse May Add To Its Winnings

The Hong Kong stock market has moved higher in two straight sessions, gathering almost 280 points or 1.2 percent along the way. The Hang Seng Index now rests just above the 24,880-point plateau and it's expected to see continued strength on Thursday.

The global forecast for the Asian markets is upbeat on solid earnings news and economic data. The European markets were mixed and the U.S. bourses moved higher and the Asian markets are expected to follow the latter lead.

The Hang Seng finished modestly higher on Wednesday as gains from the financials and casinos were capped by weakness from the oil companies and a mixed picture from the property sector.

For the day, the index climbed 110.38 points or 0.45 percent to finish at 24,883.14 after trading between 24,671.51 and 24,905.44.

Among the actives, Hang Lung Properties surged 2.35 percent, while China Life Insurance soared 1.55 percent, Galaxy Entertainment spiked 1.27 percent, WH Group accelerated 1.18 percent, AAC Technologies rallied 1.12 percent, CNOOC plummeted 1.05 percent, China Mobile jumped 0.85 percent, Techtronic Industries tumbled 0.85 percent, Power Assets skidded 0.81 percent, CSPC Pharmaceutical climbed 0.79 percent, Sands China and New World Development both gathered 0.69 percent, Industrial and Commercial Bank of China collected 0.64 percent, China Petroleum and Chemical (Sinopec) sank 0.58 percent, China Mengniu Dairy perked 0.54 percent, Tencent Holdings dropped 0.37 percent, Ping An Insurance advanced 0.36 percent, Dun Hung Kai Properties shed 0.32 percent, AIA Group lost 0.27 percent, Hong Kong & China Gas fell 0.18 percent, CITIC rose 0.14 percent and BOC Hong Kong and CLP Holdings were unchanged.

The lead from Wall Street is positive as stocks opened higher on Wednesday and picked up steam as the day progressed.

The Dow added 160.29 points or 0.61 percent to finish at 26,539.57, while the NASDAQ spiked 140.85 points or 1.35 percent to end at 10,542.94 and the S&P 500 rose 40.00 points or 1.24 percent to close at 3,258.44.

Early buying interest was partly generated by the latest batch of earnings news, with a number of big-name companies reporting better than expected quarterly results including Advanced Micro Devices (AMD) and C.H. Robinson (CHRW).

The strength on Wall Street also reflected a report from the National Association of Realtors showing another significant increase in pending home sales in June.

Stocks saw continued strength after the Federal Reserve announced its widely expected decision to leave interest rates at near-zero levels amid the economic hardship imposed by the coronavirus pandemic.

Crude oil prices moved higher on Wednesday after data showed a larger than expected decline in U.S. crude inventories last week. West Texas Intermediate Crude oil futures for September ended up $0.23 or 0.6 percent at $41.27 a barrel.

Closer to home, Hong Kong will release June figures for retail sales later today; in May, sales plummeted 33.9 percent on year.

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