Hong Kong Stock Market May Take Further Damage On Tuesday

Ahead of Monday's holiday for National Day, the Hong Kong stock market had finished lower in three straight sessions, plummeting more than 1,100 points or 5.3 percent along the way. The Hang Seng now rests just above the 20,000-point plateau and it's likely to extend its losses on Tuesday.

The global forecast for the Asian markets is soft on concerns over economic growth and the outlook for interest rates. The European and U.S. markets were sharply lower and the Asian bourses are tipped to open in similar fashion.

The Hang Seng finished sharply lower on Friday with damage across the board, especially among the properties, technology stocks and oil companies.

For the day, the index plummeted 791.44 points or 3.81 percent to finish at 20,001.96 after trading between 19,973.47 and 20,320.28.

Among the actives, AAC Technologies tumbled 7.25 percent, while Alibaba Group declined 6.57 percent, Alibaba Health Info plummeted 8.45 percent, ANTA Sports slumped 6.34 percent, China Life Insurance slid 2.42 percent, China Mengniu Dairy retreated 6.54 percent, China Petroleum and Chemical (Sinopec) fell 1.01 percent, China Resources Land shed 4.47 percent, CITIC dipped 2.19 percent, CNOOC lost 1.09 percent, Country Garden cratered 9.94 percent, CSPC Pharmaceutical skidded 5.17 percent, Galaxy Entertainment sank 4.65 percent, Hang Lung Properties slipped 1.87 percent, Henderson Land eased 0.47 percent, Hong Kong & China Gas slid 0.70 percent, Industrial and Commercial Bank of China was down 1.72 percent, JD.com stumbled 6.21 percent, Lenovo jumped 2.08 percent, Li Ning tanked 7.33 percent, Meituan dropped 4.68 percent, New World Development fell 2.50 percent, Techtronic Industries plunged 8.20 percent, Xiaomi Corporation lost 4.15 percent and WuXi Biologics surrendered 7.01 percent.

The lead from Wall Street is broadly negative as the major averages opened sharply lower on Monday and the losses only accelerated as the day progressed.

The Dow plunged 653.67 points or 1.99 percent to finish at 32,245.70, while the NASDAQ plummeted 521.41 points or 4.29 percent to close at 11,623.25 and the S&P 500 tumbled 132.10 points or 3.20 percent to end at 3,991.24.

Traders seem worried aggressive moves by global central banks to contain inflation could lead to a period of stagflation or an outright recession. Rising treasury yields also contributed to the selloff.

The extended sell-off on Wall Street also came as traders looked ahead to inflation data later this week. The latest snapshot of inflation could impact expectations regarding how aggressively the Federal Reserve plans to raise interest rates.

Crude oil prices slumped on Monday, weighed by concerns about outlook for energy demand amid the impact of the Ukraine war and a slowdown in Chinese economic growth. West Texas Intermediate Crude oil futures for June ended down by $6.68 or 6.1 percent at $103.09 a barrel.

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