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Recovery Expected For Hong Kong Stock Market

The Hong Kong stock market has moved lower in five straight sessions, tumbling more than 750 points or 2.8 percent along the way. The Hang Seng Index now rests just above the 28,110-point plateau and it's overdue for support on Wednesday.

The global forecast for the Asian markets is mixed and flat on concerns over the outlook for interest rates. The European markets were down and the U.S. bourses were mixed and the Asian markets are tipped to follow the latter lead.

The Hang Seng finished modestly lower on Tuesday following losses from the financials, properties and oil and insurance companies.

For the day, the index shed 215.41 points or 0.76 percent or 215.41 points to finish at 28,116.28 after trading between 28,080.73 and 28,312.97.

Among the actives, WH Group plummeted 3.20 percent, while AAC Technologies plunged 2.75 percent, CSPC Pharmaceutical tumbled 2.56 percent, Sands China soared 1.67 percent, Ping An Insurance skidded 1.62 percent, New World Development dropped 1.45 percent, China Petroleum and Chemical (Sinopec) sank 0.97 percent, AIA Group retreated 0.83 percent, CNOOC declined 0.77 percent, Industrial and Commercial Bank of China shed 0.73 percent, Galaxy Entertainment lost 0.64 percent, Hong Kong & China Gas fell 0.57 percent, China Life Insurance slid 0.20 percent and China Mobile was down 0.14 percent.

The lead from Wall Street is cautiously optimistic as stocks opened lower on Tuesday but recovered to finish mixed.

The Dow shed 22.65 points or 0.08 percent to 26,783.49, while the NASDAQ added 43.35 points or 0.54 percent to 8,141.73 and the S&P 500 rose 3.68 points or 0.12 percent to 2,979.63.

Traders seemed reluctant to make significant moves ahead of Congressional testimony by Federal Reserve Chairman Jerome Powell later today. The Fed chief is not likely to specifically lay out the central bank's plans to lawmakers, but traders will analyze his comments for clues about the outlook for rates.

Wednesday will also see the release of the minutes of the Fed's last monetary policy meeting, which may shed additional light on the central bank's decision to make notable changes to its accompanying statement.

Crude oil futures settled higher Tuesday as traders weighed crude demand and supply prospects ahead of weekly inventory data. West Texas Intermediate Crude oil futures for August ended up $0.17 or 0.3 percent at $57.83 a barrel.

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