Hong Kong Stock Market May Take Further Damage On Monday

The Hong Kong stock market on Friday snapped the two-day winning streak in which it had climbed more than 360 points or 1.3 percent. The Hang Seng Index now sits just above the 28,720-point plateau and it's tipped to open in the red again on Monday.

The global forecast for the Asian markets suggests consolidation on sliding crude oil prices and another local surge in coronavirus cases. The European markets were mixed and the U.S. bourses were down and the Asian markets are also tipped to open in the red.

The Hang Seng finished sharply lower on Friday following losses from the financials, properties. Casinos and technology stocks.

For the day, the index plummeted 578.38 points or 1.97 percent to finish at 28,724.88 after trading between 28,701.69 and 29,154.75.

Among the actives, AAC Technologies lost 1.70 percent, while AIA Group cratered 4.44 percent, Alibaba Group retreated 2.77 percent, Alibaba Health Info and China Life Insurance both weakened 0.63 percent, ANTA Sports dipped 1.20 percent, China Mengniu Dairy skidded 2.92 percent, China Petroleum and Chemical (Sinopec) declined 2.27 percent, China Resources Land slid 1.35 percent, CITIC eased 0.12 percent, CSPC Pharmaceutical dropped 2.04 percent, Galaxy Entertainment plunged 3.59 percent, Henderson Land slipped 0.72 percent, Hong Kong & China Gas was down 0.48 percent, Industrial and Commercial Bank of China and Meituan both plummeted 3.62 percent, Longfor lost 0.21 percent, New World Development shed 1.91 percent, Power Assets perked 0.42 percent, Sands China tanked 3.40 percent, Sun Hung Kai Properties fell 1.51 percent, Techtronic Industries tumbled 3.21 percent, Xiaomi Corporation surrendered 2.19 percent, WuXi Biologics sank 2.06 percent and CNOOC was unchanged.

The lead from Wall Street is soft as the major averages opened lower on Friday and remained in the red throughout the trading day.

The Dow dropped 185.51 points or 0.54 percent to finish at 33,874.85, while the NASDAQ sank 119.86 points or 0.85 percent to end at 13,962.68 and the S&P 500 lost 30.30 points or 0.72 percent to close at 4,181.17.

For the week, the S&P 500 was nearly flat, while the Dow and the NASDAQ fell 0.5 percent and 0.4 percent, respectively. For the month, the NASDAQ spiked 5.4 percent, the S&P jumped 5.2 percent and the Dow climbed 2.7 percent.

The pullback on Friday reflected profit taking and a reaction to mixed earnings news from the likes of Twitter (TWTR), Chevron (CVX) and Exxon Mobil (XOM).

In economic news, the Commerce Department showing personal income skyrocketed in March, while the University of Michigan said consumer sentiment in the U.S. improved more than estimated in April.

Crude oil prices drifted lower on Friday, coming off six-week highs as worries about energy demand resurfaced amid a continued surge in coronavirus cases in Asia. West Texas Intermediate Crude oil futures for June ended down $1.43 or 2.2 percent at $63.58 a barrel.

Closer to home, Hong Kong will release an advance estimate for Q1 gross domestic product later today. In the three months prior, GDP was up 0.2 percent on quarter and down 3.0 percent on year.

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