Hong Kong Bourse Tipped To Bounce Higher Again On Wednesday

The Hong Kong stock market on Tuesday snapped the three-day winning streak in which it had advanced almost 750 points or 3.3 percent. The Hang Seng Index now sits just beneath the 23,740-point plateau although it's likely to rebound on Wednesday.

The global forecast for the Asian markets is positive, with support expected from the oil and technology stocks. The European and U.S. markets were up and the Asian markets are tipped to open in similar fashion.

The Hang Seng finished slightly lower on Tuesday following mixed performances from the technology stocks, oil companies and properties.

For the day, the index slipped 7.48 points or 0.03 percent to finish at 23,739.06 after trading between 23,595.01 and 23,863.83.

Among the actives, AAC Technologies and CSPC Pharmaceutical both sank 0.75 percent, while AIA Group tanked 1.75 percent, Alibaba Group tumbled 1.57 percent, Alibaba Health Info jumped 1.01 percent, ANTA Sports plummeted 2.79 percent, China Life Insurance collected 0.15 percent, China Mengniu Dairy dropped 0.63 percent, China Petroleum and Chemical (Sinopec) added 0.52 percent, China Resources Land declined 0.95 percent, CITIC lost 0.36 percent, CNOOC gained 0.35 percent, Country Garden surged 4.00 percent, Galaxy Entertainment climbed 0.86 percent, Hang Lung Properties declined 0.87 percent, Henderson Land spiked 1.82 percent, Hong Kong & China Gas shed 0.50 percent, Industrial and Commercial Bank of China fell 0.22 percent, Li Ning retreated 0.91 percent, Longfor rallied 0.98 percent, Meituan advanced 0.68 percent, New World Development rose 0.17 percent, Techtronic Industries soared 2.59 percent, Xiaomi Corporation plunged 1.94 percent and WuXi Biologics skyrocketed 5.99 percent.

The lead from Wall Street is firm as the major averages opened lower on Tuesday and were directionless through the morning but accelerated into the green in the afternoon, finishing near daily highs.

The Dow jumped 183.15 points or 0.51 percent to finish at 36,252.02, while the NASDAQ surged 210.62 points or 1.41 percent to end at 15,153.82 and the S&P 500 gained 42.78 points or 0.92 percent to close at 4,713.07.

The turnaround on Wall Street came after Federal Reserve Chair Jerome Powell testified before a Senate Banking Committee hearing on his nomination for another term. Powell highlighted elevated inflation as a result of supply chain issues and said the Fed would use all of its tools to prevent higher inflation from becoming entrenched.

While Powell's remarks have been described as hawkish, they are not seen as indicating the Fed will be more aggressive than already suggested by the minutes of the central bank's latest meeting.

Treasury yields moved to the downside in reaction to Powell's testimony, with the benchmark ten-year yield continuing to give ground after reaching its highest intraday level since January 2020 on Monday.

Crude oil prices moved sharply higher Tuesday, lifting the most active crude futures contract to the highest settlement in about two months. Hopes that the spread of the Omicron variant will not derail the global economy and adversely impact energy demand supported oil prices. West Texas Intermediate crude oil futures for February spiked $2.99 or 3.8 percent at $81.22 a barrel.

For comments and feedback contact: editorial@rttnews.com

Follow RTT