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Heavy Damage Expected For Hong Kong Shares

Ahead of Monday's holiday, the Hong Kong stock market had snapped the two-day slide in which it had fallen more than 950 points or 3.3 percent. The Hang Seng Index now rests just above the 28,550-point plateau, although it's expected to open sharply lower on Tuesday as it catches up on missed and extremely negative sentiment.

The global forecast for the Asian markets is broadly negative on concerns of a full-fledged trade war between the U.S. and China. The European and U.S. markets were firmly in the red and the Asian bourses are expected to open in similar fashion.

The Hang Seng finished modestly higher on Friday following gains from the financials, properties and casinos.

For the day, the index advanced 239.14 points or 0.84 percent to finish at 28,550.24 after trading between 28,203.22 and 28,833.45.

Among the actives, Hengan International plummeted 3.08 percent, while China Mengniu Dairy surged 2.95 percent, Sands China soared 2.60 percent, Ping An Insurance spiked 2.48 percent, CSPC Pharmaceutical jumped 2.37 percent, AAC Technologies climbed 2.18 percent, Tencent Holdings perked 1.70 percent, Galaxy Entertainment gathered 1.68 percent, China Life Insurance advanced 1.24 percent, WH Group added 0.92 percent, China Mobile sank 0.89 percent, BOC Hong Kong gained 0.76 percent, CITIC Limited shed 0.73 percent, Hong Kong & China Gas rose 0.65 percent, Industrial and Commercial Bank of China collected 0.36 percent, China Petroleum and Chemical (Sinopec) fell 0.35 percent, New World Development was up 0.32 percent and CNOOC added 0.30 percent.

The lead from Wall Street is brutal as stocks moved sharply lower on Monday, with the Dow sliding to a three-month closing low and the NASDAQ and S&P 500 hitting one-month lows.

The Dow shed 617.38 points or 2.38 percent to 25,324.99, while the NASDAQ plummeted 269.92 points or 3.41 percent to 7,647.02 and the S&P 500 fell 69.53 points or 2.41 percent to 2,811.87.

The sell-off on Wall Street came after China announced plans to raise tariffs on $60 billion worth of U.S. goods, shrugging off a warning from U.S. President Donald Trump. The move by China comes in retaliation for Trump's recent decision to raise tariffs on approximately $200 billion worth of Chinese goods to 25 percent from 10 percent.

Trump has previously threatened to raise tariffs on essentially all remaining imports from China, which are valued at approximately $300 billion.

Crude oil futures settled notably lower Monday as worries about global growth following an escalation in U.S.-China trade tensions raised concerns about energy demand. West Texas Intermediate crude oil futures for June ended down $0.62 or 1 percent at $61.04 a barrel.

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