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Hong Kong Bourse May Extend Thursday's Losses

The Hong Kong stock market on Thursday ended the six-day winning streak in which it had spiked more than 1,340 points or 5.3 percent. The Hang Seng Index now rests just beneath the 27,550-point plateau and it may take further damage on Friday.

The global forecast for the Asian markets suggests consolidation after the markets responded yesterday to the positive catalysts and are now overbought. The European and U.S. markets were up and the Asian bourses are due for profit taking.

The Hang Seng finished modestly lower on Thursday as losses from the properties and casinos were mitigated by support from the financials.

For the day, the index dropped 143.78 points or 0.52 percent to finish at 27,548.52 after trading between 27,457.47 and 27,752.36.

Among the actives, Xiaomi Corporation plummeted 5.60 percent, while Alibaba Group plunged 3.91 percent, WuXi Biologics tanked 3.11 percent, BOC Hong Kong surged 2.90 percent, AAC Technologies tumbled 2.50 percent, China Petroleum and Chemical (Sinopec) soared 2.20 percent, AIA Group spiked 2.10 percent, Industrial and Commercial Bank of China collected 1.87 percent, Galaxy Entertainment accelerated 1.76 percent, ANTA Sports skidded 1.58 percent, CNOOC retreated 1.49 percent, CSPC Pharmaceutical declined 1.23 percent, Ping An Insurance rallied 1.23 percent, Hong Kong & China Gas and Wharf Real Estate both surrendered 1.20 percent, China Mengniu Dairy and CLP Holdings both sank 0.96 percent, New World Development dropped 0.95 percent, Meituan shed 0.65 percent, Power Assets lost 0.60 percent, Techtronic Industries added 0.53 percent, Sands China fell 0.44 percent, China Resources Land slid 0.33 percent, Henderson Land eased 0.16 percent and CITIC, Sun Hung Kai Properties and China Life Insurance were unchanged.

The lead from Wall Street is broadly positive as stocks moved sharply higher on Thursday and reached fresh record closing highs.

The Dow climbed 211.73 points or 0.69 percent to finish at 31,041.13, while the NASDAQ surged 326.69 points or 2.56 percent to end at 13.067.48 and the S&P 500 gained 55.65 points or 1.48 percent to close at 3,803.79.

The strength on Wall Street came as U.S. lawmakers certified President-elect Joe Biden's victory after the process was delayed by several hours as supporters of President Donald Trump stormed the U.S. Capitol building.

The certification of Biden's victory along with Democratic victories in Georgia's Senate runoff elections will give Democrats control of the House, Senate and the White House, which is expected to lead to additional stimulus.

In economic news, the Labor Department noted a modest decrease in first-time claims for U.S. unemployment benefits last week. Also, The Institute for Supply Management said service sector activity in the U.S. unexpectedly grew at a faster pace in December.

Crude oil futures ended higher on Thursday, extending gains to a third straight session, with the recent data showing a drop in stockpiles continuing to support prices. West Texas Intermediate Crude oil futures for February ended up $0.20 or 0.4 percent at $50.83 a barrel.

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