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Hong Kong Stock Market May Test Support At 28,000 Points

The Hong Kong stock market on Friday snapped the two-day winning streak in which it had risen more than 150 points or 0.6 percent. The Hang Seng Index now rests just above the 28,275-point plateau, and it's looking at another soft start again on Monday.

The global forecast for the Asian markets is soft on sliding crude oil prices and concerns over global trade. The European and U.S. markets ended lower on Friday and the Asian markets are tipped to open in similar fashion on Monday.

The Hang Seng finished sharply lower on Friday with damage across the board - especially from the financials, properties, casinos and oil and insurance companies.

For the day, the index skidded 328.61 points or 1.16 percent to finish at 27,946.46 after trading between 27,909.73 and 28,428.00.

Among the actives, AAC Technologies plummeted 3.58 percent, WH Group plunged 3.46 percent, Sands China tumbled 3.00 percent, Ping An Insurance skidded 2.79 percent, China Mengniu Dairy retreated 2.58 percent, Tencent Holdings declined 2.41 percent, New World Development dropped Galaxy Entertainment contracted 2.35 percent, China Life Insurance shed 2.09 percent, China Mobile soared 1.82 percent, CSPC Pharmaceutical lost 1.54 percent, CNOOC fell 1.47 percent, CITIC slid 1.28 percent, Hong Kong & China Gas sank 0.73 percent and Industrial and Commercial Bank was down 0.54 percent.

The lead from Wall Street suggests volatile negativity as stocks saw wild swings on Friday, finally ending firmly in the red.

The Dow shed 98.68 points or 0.38 percent to finish at 25,764.00, while the NASDAQ lost 81.76 points or 1.04 percent to 7,816.28 and the S&P 500 fell 16.79 points or 0.58 percent to 2,859.53. For the week, the Dow shed 0.7 percent, the NASDAQ lost 1.3 percent and the S&P fell 0.8 percent.

Reflecting recent market sensitivity to trade-related news, Wall Street's late-day pullback followed reports that negotiations between the U.S. and China have stalled.

In economic news, the University of Michigan noted a substantial jump in consumer sentiment in May, although the data was recorded mostly before trade negotiations with China collapsed.

Crude oil futures settled modestly lower on Friday amid prospects of supply disruptions due to escalating tensions in the Middle East. West Texas Intermediate Crude oil futures for June ended down $0.11 or 0.17 percent at $62.76 a barrel.

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