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Lower Open Predicted For Hong Kong Stock Market

The Hong Kong stock market has alternated between positive and negative finishes through the last seven 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 above the 28,980-point plateau and it's looking at a red light again on Monday.

The global forecast for the Asian markets is mixed to lower on concerns over bond yields and sliding crude oil prices. The European and U.S. markets were mixed with a soft bias and the Asian markets are tipped to follow that lead.

The Hang Seng finished with huge losses on Friday with damage across the board - especially from the technology and oil stocks.

For the day, the index plummeted 1,093.99 points 3.64 percent to finish at the daily low of 28.980.21 after peaking at 29,579.67.

Among the actives, AAC Technologies fell 2.22 percent, while AIA Group plummeted 3.82 percent, Alibaba Group retreated 4.52 percent, ANTA Sports tumbled 5.48 percent, BOC Hong Kong was down 0.96 percent, China Life Insurance sank 2.85 percent, China Mengniu Dairy declined 4.50 percent, China Petroleum and Chemical (Sinopec) skidded 5.09 percent, China Resources Land added 0.55 percent, CITIC dropped 3.10 percent, CNOOC plunged 6.19 percent, CSPC Pharmaceutical fell 2.06 percent, Galaxy Entertainment surrendered 4.25 percent, Hang Lung Properties sank 3.37 percent, Henderson Land lost 2.32 percent, Hong Kong & China Gas rose 0.17 percent, Industrial and Commercial Bank of China retreated 3.44 percent, Meituan cratered 8.21 percent, New World Development skidded 3.78 percent, Ping An Insurance shed 2.36 percent, Sands China plunged 3.97 percent, Sun Hung Kai Properties slid 0.32 percent, Techtronic Industries tumbled 4.13 percent, Xiaomi Corporation tanked 5.77 percent and WuXi Biologics plummeted 7.91 percent.

The lead from Wall Street is volatile after the major averages saw wild swings on Friday, finally finishing on opposite sides of the unchanged line.

The Dow tumbled 469.64 points or 1.50 percent to finish at 30,932.37, while the NASDAQ gained 72.92 points or 0.56 percent to close at 13,192.35 and the S&P 500 fell 18.19 points or 0.48 percent to close at 3,811.15. For the week, the NASDAQ plummeted 4.9 percent, the S&P sank 2.4 percent and the Dow lost 1.8 percent.

The volatility came as traders watched the bond markets following the recent spike in yields. Yields also fluctuated as the day progressed, rebounding near the unchanged line after seeing early weakness before moving to the downside.

The fluctuations in the bond markets followed another batch of upbeat U.S. economic data. The Commerce Department said U.S. personal income skyrocketed in January, reflecting the issuance of $600 stimulus checks.

But the report also showed inflation remained relatively tame. Concerns about inflation have weighed on treasuries despite Fed Chair Jerome Powell's repeated assurances the central bank plans to maintain interest rates at near-zero levels for the foreseeable future.

Crude oil prices drifted lower Friday as the dollar gained strength amid rising bond yields and solid economic data. West Texas Intermediate Crude oil futures for April ended down $2.03 or 3.2 percent at $61.50 a barrel.

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