Lower Open Anticipated For Hong Kong Stock Market

The Hong Kong stock market has moved lower in back-to-back sessions, tumbling almost 650 points or 2.4 percent along the way. The Hang Seng Index now rests just above the 25,715-point plateau and it's looking at another red light for Friday's trade.

The global forecast for the Asian markets is mixed to lower, thanks to coronavirus concerns and sinking crude oil prices. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to split the difference.

The Hang Seng finished sharply lower on Thursday following losses from the financials, casinos and technology stocks, although the properties offered support.

For the day, the index plummeted 604.93 points or 2.30 percent to finish at 25,716.00 after trading between 25,624.52 and 26,125.09.

Among the actives, AAC Technologies retreated 3.07 percent, while AIA Group shed 1.37 percent, Alibaba Group plummeted 5.79 percent, Alibaba Health Info skidded 3.51 percent, ANTA Sports declined 2.59 percent, China Life Insurance lost 1.34 percent, China Mengniu Dairy added 0.95 percent, China Petroleum and Chemical (Sinopec) advanced 1.39 percent, China Resources Land surrendered 2.18 percent, CITIC jumped 1.75 percent, CNOOC spiked 1.81 percent, Country Garden tanked 3.79 percent, CSPC Pharmaceutical gained 0.83 percent, Galaxy Entertainment dropped 1.39 percent, Hang Lung Properties improved 0.67 percent, Henderson Land increased 0.59 percent, Hong Kong & China Gas rose 0.48 percent, Industrial and Commercial Bank of China slid 0.68 percent, Longfor collected 0.43 percent, Meituan plunged 4.75 percent, New World Development was up 0.14 percent, Sands China fell 1.11 percent, Sun Hung Kai Properties perked 0.74 percent, Techtronic Industries gathered 0.79 percent, Xiaomi Corporation tumbled 3.67 percent and WuXi Biologics sank 1.80 percent.

The lead from Wall Street is negative as the major averages opened higher on Thursday but fell into the red midway through the session and ended that way.

The Dow dropped 151.69 points or 0.43 percent to finish at 34,879.38, while the NASDAQ shed 38.38 points or 0.25 percent to close at 15,248.25 and the S&P 500 fell 20.79 points or 0.46 percent to end at 4,493.28.

The early strength on Wall Street came after the Labor Department released a report showing a bigger than expected decrease in first-time claims for U.S. unemployment benefits last week.

Buying interest waned over the course of the session, however, with traders expressing continued concerns about the impact of the rapid spread of the delta variant of the coronavirus.

Uncertainty about the outlook for monetary policy also weighed on the markets ahead of the next Federal Reserve meeting later this month.

Crude oil futures settled sharply lower Thursday, weighed down by reports that China is looking to release some crude stock from its national reserve. West Texas Intermediate Crude oil futures for October ended down by $1.16 or 1.7 percent at $68.14 a barrel.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT