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Renewed Selling Pressure Predicted For Hong Kong Shares

The Hong Kong stock market on Friday halted the two-day slide in which it had tumbled almost 650 points or 2.4 percent. The Hang Seng Index now rests just above the 26,200-point plateau although it may hand back those gains on Monday.

The global forecast for the Asian markets is soft on ongoing coronavirus concerns. The European markets were mixed and little changed and the U.S. bourses were down and the Asian markets figure to split the difference.

The Hang Seng finished sharply higher on Friday following gains from the financials, properties and oil and technology stocks, while the casinos were soft.

For the day, the index surged 489.91 points or 1.91 percent to finish at the daily high of 26,205.91 after moving as low as 25,870.71.

Among the actives, AAC Technologies rose 0.85 percent, while AIA Group jumped 2.09 percent, Alibaba Group soared 4.29 percent, Alibaba Health Info skyrocketed 4.74 percent, ANTA Sports strengthened 3.22 percent, China Life Insurance collected 1.51 percent, China Mengniu Dairy and Industrial and Commercial Bank of China both advanced 1.36 percent, China Petroleum and Chemical (Sinopec) gained 1.05 percent, China Resources Land spiked 3.95 percent, CITIC was up 0.71 percent, CNOOC gathered 2.54 percent, Country Garden rallied 1.76 percent, CSPC Pharmaceutical climbed 1.77 percent, Galaxy Entertainment tanked 1.03 percent, Hang Lung Properties and New World
Development both rose 0.56 percent, Henderson Land increase 0.73 percent, Hong Kong & China Gas gained 0.16 percent, Longfor accelerated 3.74 percent, Meituan surged 4.34 percent, Sands China lost 0.38 percent, Sun Hung Kai Properties added 1.19 percent, Techtronic Industries improved 0.72 percent, Xiaomi Corporation perked 2.12 percent, Wharf Real Estate plunged 1.20 percent and WuXi Biologics dropped 1.00 percent.

The lead from Wall Street is negative spent Friday's session bouncing back and forth across the unchanged line before finally ending in the red, extending recent losses.

The Dow shed 271.68 points or 0.78 percent to finish at 34,607.72, while the NASDAQ lost 132.81 points or 0.87 percent to end at 15,115.49 and the S&P 500 fell 34.70 points or 0.77 percent to close at 4,458.58. For the week, the Dow lost 2.2 percent, the NASDAQ sank 1.6 percent and the S&P fell 1.7 percent.

Some initial strength on Wall Street came on bargain hunting, but buying interest quickly waned as traders continued to express concerns about the economic impact of the delta variant.

Traders may also have been wary of buying stocks ahead of the Federal Reserve's next monetary policy meeting later this month. The Fed may provide an update on the plans for its asset purchase program, although recent signs of slowing economic momentum could lead the central bank to push back tapering.

In U.S. economic news, the Labor Department reported that producer prices increased by slightly more than expected in August.

Crude oil futures settled sharply higher Friday on signs of a drop in crude supply in the U.S. due to the impact of Hurricane Ida. West Texas Intermediate Crude oil futures for October ended up $1.58 or 2.3 percent at $69.72 a barrel. WTI crude futures gained 0.6 percent for the week.

Closer to home, Hong Kong will provide Q2 numbers for industrial production later today; in the three months prior, industrial production gained 2.6 percent on year.

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