Mild Recovery Seen For Hong Kong Stock Market

The Hong Kong stock market headed south again on Thursday, one day after halting the four-day losing streak in which it had plummeted more than 1,470 points or 7.1 percent. The Hang Seng now rests just above the 19,380-point plateau although it's expected to bounce higher again on Friday.

The global forecast is murky amidst uncertainties about interest rates and economic growth. The European markets were down and the U.S. bourses were mixed and little changed and the Asian markets figure to split the difference.

The Hang Seng finished sharply lower on Thursday with damage across the board - especially from the properties and technology stocks.

For the day, the index plunged 444.23 points or 2.24 percent to finish at 19,380.34 after trading between 19,342.89 and 19,731.27.

Among the actives, AAC Technologies tumbled 3.83 percent, while Alibaba Group plunged 6.60 percent, Alibaba Health Info declined 3.38 percent, ANTA Sports fell 1.10 percent, China Life Insurance eased 0.54 percent, China Mengniu Dairy sank 1.42 percent, China Petroleum and Chemical (Sinopec) slid 1.03 percent, China Resources Land skidded 2.58 percent, CITIC rose 0.25 percent, Country Garden tanked 4.50 percent, CSPC Pharmaceutical dipped 0.90 percent, Galaxy Entertainment retreated 3.21 percent, Hang Lung Properties slipped 0.70 percent, Hong Kong & China Gas was down 0.60 percent, Industrial and Commercial Bank of China lost 1.11 percent, JD.com plummeted 7.78 percent, Lenovo stumbled3.04 percent, Li Ning dropped 2.00 percent, Meituan slumped 2.73 percent, New World Development shed 1.41 percent, Techtronic Industries surrendered 3.55 percent, Xiaomi Corporation cratered 5.82 percent, WuXi Biologics weakened 2.85 percent and CNOOC and Henderson Land were unchanged.

The lead from Wall Street offers little clarity as the major averages opened lower on Thursday and spent much of the day bouncing back and forth across the unchanged line before finally ending mixed and little moved.

The Dow dropped 103.81 points or 0.33 percent to finish at 31,730.30, while the NASDAQ rose 6.73 points or 0.06 percent to close at 11,370.96 and the S&P 500 fell 5.10 points or 0.13 percent to end at 3,930.08.

The volatility on Wall Street came as traders continued to debate whether the markets have hit their bottom, with the major averages falling to their worst levels in over a year.

However, recent bargain hunting efforts have largely been thwarted by worries about the Federal Reserve aggressively raising interest rates in an effort to combat elevated inflation.

Adding to the worries, the Labor Department reported that the annual rate of producer price growth slowed less than expected in April. Also, the Labor Department unexpectedly showed a slight increase in first-time claims for U.S. unemployment benefits last week.

Crude oil futures ended modestly higher on Thursday as the European Union's proposal to ban Russian oil offset concerns of prolonged Covid-19 lockdowns in China. West Texas Intermediate Crude oil futures for June ended higher by $0.42 or 0.4 percent at $106.13 a barrel.

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