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Lower Open Tipped For Hong Kong Stock Market

The Hong Kong stock market has finished lower in two of three trading days since the end of the seven-day winning streak in which it had surged more than 1,950 points or 7 percent. The Hang Seng Index now rests just beneath the 30,320-point plateau and it's expected to open in the red again on Tuesday.

The global forecast for the Asian markets is flat to lower, with anticipated weakness from tech shares likely offset by support from crude oil prices. The European markets were slightly lower and the U.S. bourses were mixed and the Asian markets figure to split the difference.

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

For the day, the index dropped 324.90 points or 1.06 percent to finish at 30,319.83 after trading between 30,298.58 and 31,071.61.

Among the actives, WuXi Biologics cratered 7.94 percent, while Meituan plummeted 5.52 percent, Xiaomi Corporation plunged 5.38 percent, ANTA Sports tanked 4.80 percent, AAC Technologies tumbled 4.67 percent, Galaxy Entertainment surged 4.41 percent New World Development soared 4.31 percent, China Petroleum and Chemical (Sinopec) spiked 4.01 percent, CITIC accelerated 3.93 percent, Sun Hing Kai Properties rallied 3.86 percent, China Mengniu Dairy skidded 3.07 percent, Techtronic Industries retreated 2.90 percent, CSPC Pharmaceutical declined 2.66 percent, Wharf Real Estate jumped 2.51 percent, Alibaba Group surrendered 2.49 percent, Industrial and Commercial Bank of China collected 2.19 percent, Henderson Land climbed 2.18 percent, China Resources Land gathered 2.13 percent, CNOOC perked 1.51 percent, CLP Holdings advanced 1.45 percent, China Life Insurance sank 1.30 percent, Ping An Insurance dropped 1.20 percent, Sands China added 1.13 percent, Hong Kong & China Gas gained 1.08 percent, AIA Group shed 0.89 percent, Power Assets rose 0.48 percent, BOC Hong Kong was up 0.41 percent and Hang Lung Properties was unchanged.

The lead from Wall Street is mostly weak as stocks opened in the red on Monday and largely stayed that way, although the Dow managed to break into positive territory.

The Dow rose 27.37 points or 0.09 percent to finish at 31,521.69, while the NASDAQ plummeted 341.42 points or 2.46 percent to end at 13,533.05 and the S&P 500 lost 30.21 points or 0.77 percent to close at 3,876.50.

The steep drop by the NASDAQ came as traders moved out of technology stocks amid concerns about the impact of the recent increase in treasury yields. Electric car maker Tesla (TSLA), Apple (AAPL), Microsoft (MSFT) and Amazon (AMZN) all took heavy damage.

The sell-off came as the yield on the benchmark ten-year note saw further upside, reaching its highest closing level in a year. Bond yields remain at historically low levels, but the recent increase may still spook investors already concerned that stocks are overbought.

In U.S. economic news, the Conference Board reported a bigger than expected increase by its index of leading U.S. economic indicators in January.

Crude oil prices rose sharply on Monday amid supply concerns due to a slowdown in production after last week's severe cold snap. West Texas Intermediate Crude oil futures contracts for March expired at $61.49 a barrel, gaining $2.25 or 3.8 percent for the session.

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