Hong Kong Bourse Due For Consolidation

The Hong Kong stock market has climbed higher in three straight sessions, jumping almost 750 points or 3.3 percent along the way. The Hang Seng Index now sits just beneath the 23,750-point plateau although it's likely to run out of steam on Tuesday.

The global forecast for the Asian markets is negative on concerns over the outlook for interest rates. The European markets were down and the U.S. bourses were mixed and the Asian markets figure to split the difference.

The Hang Seng finished sharply higher on Monday following gains from the financials, pharmaceuticals and technology shares.

For the day, the index spiked 253.16 points or 1.08 percent to finish at 23,746.54 after trading between 23,399.09 and 23,790.52.

Among the actives, AAC Technologies jumped 2.15 percent, while AIA Group retreated 1.23 percent, Alibaba Group sank 0.93 percent, Alibaba Health Info skyrocketed 10.83 percent, ANTA Sports spiked 2.97 percent, China Life Insurance plunged 1.63 percent, China Mengniu Dairy accelerated 2.92 percent, China Petroleum and Chemical (Sinopec) tumbled 1.28 percent, China Resources Land rallied 2.21 percent, CITIC fell 0.36 percent, CNOOC shed 0.58 percent, Country Garden surged 8.43 percent, CSPC Pharmaceutical soared 6.15 percent, Galaxy Entertainment gained 0.50 percent, Hang Lung Properties lost 0.49 percent, Henderson Land rose 0.30 percent, Hong Kong & China Gas dipped 0.17 percent, Industrial and Commercial Bank of China collected 1.53 percent, Li Ning advanced 1.19 percent, Longfor climbed 2.00 percent, Meituan perked 1.27 percent, New World Development added 1.17 percent, Techtronic Industries plummeted 5.12 percent, Xiaomi Corporation gathered 1,42 percent and WuXi Biologics strengthened 2.41 percent.

The lead from Wall Street is mostly soft as the major averages opened sharply lower on Monday. They showed improvement as the session progressed, with the NASDAQ creeping up over the unchanged line.

The Dow dropped 162.79 points or 0.45 percent to finish at 36,068.87, while the NASDAQ rose 6.93 points or 0.05 percent to close at 14,942.83 and the S&P 500 dipped 6.74 points or 0.14 percent to end at 4,670.29.

The early weakness on Wall Street reflected lingering concerns about the economic impact of the Omicron variant of the coronavirus and the likelihood the Federal Reserve will raise interest rates in the near future.

Treasury yields have moved sharply higher in recent sessions, with the yield on the benchmark ten-year note reaching its highest levels since January of 2020.

The jump in yields comes amid a more hawkish tone from the Fed after the minutes of the central bank's latest meeting indicated plans to accelerate monetary policy normalization.

Crude oil prices drifted lower Monday on concerns about the outlook for energy demand due to the rapid surge in the Omicron variant of the coronavirus across the globe. A firm dollar amid rising prospects for a series of interest rate hikes weighed as well on crude oil prices. West Texas Intermediate Crude futures for February slipped $0.67 or 0.9 percent at $78.23 a barrel.

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