The Hong Kong stock market has closed lower now in two straight sessions, plummeting more than 1,100 points or 5.7 percent along the way. The Hang Seng Index fell below support at the 19,700-point plateau, but now investors are hopeful that the market can start to pick up the pieces when it kicks off trade on Monday.
The global forecast for the Asian markets is cautiously optimistic after many of the bourses suffered brutal losses at the end of last week. Firmer commodity prices - especially gold and oil - will provide support, along with technology, airline and financial stocks. The European markets ended sharply lower, while the U.S. bourses tracked slightly higher - and now the Asian markets are also predicted to move to the upside.
The Hang Seng finished sharply lower on Friday, thanks to heavy selling pressure among the financial stocks, properties and the oil companies.
For the day, the index plunged 676.56 points or 3.33 percent to finish at 19,665.08 after trading between 19,655.88 and 19,822.93 on turnover of 77.47 billion Hong Kong dollars.
Among the decliners, PetroChina shed 5.83 percent, while Shanghai Petrochemical lost 5.34 percent, China Oilfield Services fell 4.95 percent, China National Offshore Oil Corp. (CNOOC) declined 3.97 percent, China Petroleum & Chemical Corporation (Sinopec) was down 3.84 percent, HSBC shed 3.76 percent, Hang Seng Bank lost 1.28 percent, China Mobile eased 1.01 percent, Bank of China fell 4.21 percent, China Construction Bank dropped 3.01 percent, Industrial and Commercial Bank of China declined 3.16 percent, Bank of Communications retreated 4.81 percent, Cheung Kong was down 3.12 percent, SHK Properties fell 3.24 percent and Henderson Land shed 3.65 percent.
The lead from Wall Street is mildly positive as stocks were able to advance by modest margins on Friday after a significantly volatile session. The major averages closed in positive territory after spending most of the day in the red.
Stocks plunged in the early afternoon on concerns about the labor market, but the major averages staged a strong recovery amid speculation the European Union would concoct a solution to Greece's debt problems.
The recovery was also spurred by a report from the Federal Reserve showing that the contraction in consumer credit markets slowed by much more than expected. Consumer credit fell by $1.73 billion in December after a revised $21.8 billion decline in November. Economists had been expecting credit to decrease by a much more substantial $10.0 billion compared to the $17.5 billion decrease originally reported for the previous month.
Stocks saw some weakness after the Labor Department reported that non-farm payroll employment declined by 20,000 jobs in January following a revised decrease of 150,000 jobs in December. Economists had forecast employment to edge up by 15,000 jobs compared to the loss of 85,000 jobs originally reported for the previous month.
The Labor Department report also said that the unemployment rate unexpectedly fell to 9.7 percent in January from 10.0 percent in December. The decrease surprised economists, who had expected the unemployment rate to remain unchanged at 10.0 percent.
Trucking company Con-way Inc. (CNW) reported a fourth quarter loss that narrowed from last year and saw revenues that came in ahead of Street estimates.
Meat products producer Tyson Foods Inc. (TSN) recorded a first-quarter profit and revenues that topped expectations, while Aetna (AET) failed to meet fourth-quarter profit forecasts amid growing medical costs but beat projections on the revenue front.
The Dow gained 10.05 points or 0.1 percent to end at 10,012.23, the NASDAQ advanced by 15.69 points or 0.7 percent to 2,141.12 and the S&P 500 rose by 3.08 points or 0.3 percent to 1,066.19. Despite the recovery, the major averages fell for a fourth straight week due largely to the sell-off seen on Thursday. The Dow slipped by 0.5 percent, while the NASDAQ and the S&P 500 declined by 0.3 percent and 0.7 percent, respectively.
In economic news, China's current account surplus dipped 35 percent in 2009 to US$284.1 billion, the State Administration of Foreign Exchange reported on Friday. The surplus was equivalent to 5.8 percent of gross domestic product in 2009.
The capital and financial account surplus totaled US$109.1 billion in 2009. The surplus includes US$36.5 billion of net inflows from foreign direct investment, the regulator said.
On the corporate front, China Nutrifruit Group Limited saw third quarter net earnings of $4.63 million or $0.11 per share, compared to $3.2 million or $0.09 per share last year. Net sales grew to $17.82 million from $13.87 million in the prior year quarter.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.