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Hong Kong Bourse Predicted To Open In The Red

The Hong Kong stock market has finished lower in back-to-back trading days, sinking more than 700 points or 2.7 percent along the way. The Hang Seng Index now sits just above the 25,500-point plateau and it may move lower again on Wednesday.

The global forecast for the Asian markets is soft due to the outlook for interest rates, despite encouraging data. 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 Tuesday following losses from the financials, properties, casinos and oil and technology stocks.

For the day, the index tumbled 311.58 points or 1.21 percent to finish at 25,502.23 after trading between 25,377.83 and 25,900.68.

Among the actives, Alibaba Health cratered 6.81 percent, while Country Garden plummeted 4.59 percent, China Resources Land plunged 3.30 percent, China Mengniu Dairy tanked 2.57 percent, CITIC tumbled 2.41 percent, Galaxy Entertainment skidded 2.10 percent, New World Development retreated 1.93 percent, Longfor declined 1.83 percent, WuXi Biologics jumped 1.82 percent, Sun Hung Kai Properties surrendered 1.82 percent, Industrial and Commercial Bank of China stumbled 1.79 percent, Henderson Land weakened 1.74 percent, Alibaba sank 1.55 percent, ANTA Sports dropped 1.49 percent, Hang Lung Properties shed 1.43 percent, AAC Technologies lost 1.34 percent, China Life Insurance fell 1.19 percent, Meituan slid 1.13 percent, Techtronic industries dipped 0.95 percent, Hong Kong & China Gas slipped 0.80 percent, China Petroleum & Chemical (Sinopec) and Wharf Real Estate both dropped 0.76 percent, Xiaomi and AIA Group both sank 0.64 percent, CNOOC and Sands China both lost 0.60 percent, Hengan International fell 0.36 percent and CSPC Pharmaceutical eased 0.21 percent.

The lead from Wall Street is negative as the major averages opened higher on Tuesday but quickly turned lower and finished in the red.

The Dow tumbled 292.06 points or 0.84 percent to finish at 34,577.57, while the NASDAQ sank 67.82 points or 0.45 percent to close at 15,037.76 and the S&P 500 fell 25.68 points or 0.57 percent to end at 4,443.05.

Stocks initially benefited from a positive reaction to a highly anticipated Labor Department report showing consumer prices increased less than expected in August. The relatively tame inflation data generated optimism that the Federal Reserve may delay plans to begin scaling back stimulus.

However, subsequent comments from economists suggested that the Fed is still likely to begin tapering its asset purchases as soon as December.

The Fed is scheduled to hold a monetary policy meeting next week, with many expecting the central bank to provide an update on the outlook for its asset purchase program.

Crude oil futures settled slightly higher Tuesday after the Labor Department said U.S. consumer prices increased less than expected last month, while traders also weighed the impact of tropical storm Nicholas. Crude oil futures settled at $70.46 a barrel, up a penny from the previous close.

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