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Renewed Selling Pressure Anticipated For Hong Kong Shares

The Hong Kong stock market on Tuesday ended the two-day losing streak in which it had plummeted nearly 950 points or 2.6 percent. The Hang Seng Index now sits just above the 28,550-point plateau although it figures to head south again on Wednesday.

The global forecast for the Asian markets is soft, with technology stocks and airlines expected to lead the way lower. The European markets were down and the U.S. bourses were mostly negative and the Asian markets are also tipped to open under pressure.

The Hang Seng finished modestly higher on Tuesday following gains from the oil companies and casinos, while the properties and technology stocks were mixed.

For the day, the index advanced 199.60 points or 0.70 percent to finish at 28,557.14 after trading between 28,321.34 and 28,577.52.

Among the actives, AAC Technologies added 0.47 percent, while AIA Group gathered 1.66 percent, Alibaba Group increased 0.63 percent, Alibaba Health Info gained 1.30 percent, ANTA Sports soared 3.11 percent, China Life Insurance collected 1.03 percent, China Mengniu Dairy accelerated 2.12 percent, China Petroleum and Chemical (Sinopec) surged 4.08 percent, China Resources Land spiked 2.50 percent, CITIC added 1.34 percent, CNOOC perked 1.59 percent, CSPC Pharmaceutical advanced 1.37 percent, Galaxy Entertainment rose 1.17 percent, Hang Lung Properties lost 0.53 percent, Henderson Land improved 1.02 percent, Hong Kong & China Gas jumped 1.45 percent, Industrial and Commercial Bank of China sank 0.60 percent, Longfor was up 0.41 percent, Meituan fell 0.48 percent, New World Development tumbled 0.73 percent, Sands China gained 0.54 percent, Sun Hung Kai Properties strengthened 0.60 percent, Techtronic Industries rallied 1.91 percent, Xiaomi Corporation climbed 1.43 percent and WuXi Biologics slid 0.46 percent.

The lead from Wall Street is mainly negative as the major averages opened Tuesday deep in the red and largely stayed that way, although the Dow managed to peak into the green at the close.

The Dow rose 19.80 points or 0.06 percent to finish at 34,133.03, while the NASDAQ plummeted 261 points or 1.88 percent to end at 13,633.50 and the S&P 500 lost 28.00 points or 0.67 percent to close at 4,164.66.

The weakness on Wall Street largely reflected a continued pullback by technology stocks, with traders cashing in on tech stocks that benefited from the coronavirus-induced lockdowns as more states continue to lift restrictions.

Additional selling pressure was generated in reaction to comments from Treasury Secretary Janet Yellen, who suggested interest rates may have to rise modestly to prevent the economy from overheating amid the recent spike in government spending.

In economic news, the Commerce Department said the U.S. trade deficit hit a new record high in March. The Commerce Department also said new orders for U.S. manufactured goods rebounded less than expected in March.

Crude oil prices moved sharply higher Tuesday, extending gains from previous session amid continued optimism about increased demand for fuel. West Texas Intermediate Crude oil futures for June ended higher by $1.20 or 1.9 percent at $65.69 a barrel.

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