Hong Kong Stock Market May Run Out Of Steam

The Hong Kong stock market has moved higher in back-to-back trading days, advancing more than 360 points or 1.3 percent along the way. The Hang Seng Index now rests just above the 28,800-point plateau although the rally may stall on Monday.

The global forecast for the Asian markets is soft on concerns over the outlook for interest rates. The European and U.S. markets were sharply lower on Friday and the Asian markets are tipped to follow suit.

The Hang Seng finished modestly higher on Friday as gains from the properties, casinos and technology stocks were capped by weakness from the oil companies.

For the day, the index climbed 242.68 points or 0.85 percent to finish at 28,801.27 after trading between 28,532.08 and 28,830.85.

Among the actives, AAC Technologies tanked 2.72 percent, while Alibaba Group climbed 1.57 percent, Alibaba Health Info rose 0.23 percent, ANTA Sports surged 6.41 percent, China Life Insurance fell 0.26 percent, China Mengniu Dairy jumped 1.74 percent, China Petroleum and Chemical (Sinopec) plunged 3.87 percent, China Resources Land plummeted 4.36 percent, CITIC sank 0.48 percent, CNOOC skidded 2.04 percent, CSPC Pharmaceutical tumbled 2.35 percent, Galaxy Entertainment added 0.56 percent, Hang Lung Properties shed 0.31 percent, Henderson Land gathered 1.05 percent, Hong Kong & China Gas retreated 1.15 percent, Longfor spiked 2.10 percent, Meituan soared 3.66 percent, New World Development was up 0.12 percent, Sands China advanced 0.59 percent, Sun Hung Kai Properties gained 0.25 percent, Techtronic Industries perked 0.95 percent, Xiaomi Corporation accelerated 1.77 percent, WuXi Biologics skyrocketed 9.35 percent and AIA Group, Industrial and Commercial Bank of China and CK Infrastructure were unchanged.

The lead from Wall Street is decidedly negative as stocks opened lower on Friday and remained in the red throughout the session.

The Dow plunged 533.37 points or 1.58 percent to finish at 33,290.08, while the NASDAQ dropped 130.97 points or 0.92 percent to end at 14,030.38 and the S&P 500 sank 55.41 points or 1.31 percent to close at 4,166.45.

For the week, the Dow plunged 3.4 percent, the NASDAQ dipped 0.3 percent and the S&P fell 1.9 percent.

Concerns about the outlook for monetary policy continued to weigh on the markets following recent Federal Reserve comments. The Fed's forecast for two interest rates hikes in 2023 has led to speculation that the central bank will soon start tapering its asset purchases.

In addition, Federal Reserve Bank of St Louis President James Bullard suggested that rates could be hiked as early as next year, touching off a wave of selling.

Crude oil prices moved higher on Friday amid optimism about energy demand in the U.S. thanks to reopening of businesses after lockdowns. West Texas Intermediate Crude oil futures for July rose $0.60 or 0.8 percent at $71.64 a barrel. WTI Crude oil futures gained 1 percent in the week.

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