Higher Open Anticipated For Hong Kong Stock Market

(RTTNews) – The Hong Kong stock market turned lower again on Wednesday, one day after snapping the three-day losing streak in which it had plummeted almost 950 points or 4.2 percent. The Hang Seng Index now rests just above the 22,340-point plateau although it’s likely to rebound again on Thursday.

The global forecast for the Asian markets is positive, with surging crude oil prices and strength among financials expected to boost the oversold markets. The European and US markets were up sharply and the Asian markets are expected to open in similar fashion.

The Hang Seng finished sharply lower on Wednesday following losses from the financials, properties, casinos and technology stocks.

For the day, the index plummeted 417.79 points or 1.84 percent to finish at 22,343.92 after trading between 22,299.14 and 22,712.44.

Among the assets, AAC Technologies plunged 5.16 percent, while AIA Group slumped 1.91 percent, Alibaba Group rose 0.10 percent, Alibaba Health Info tumbled 3.47 percent, ANTA Sports tanked 3.91 percent, China Life Insurance shed 1.53 percent, China Mengniu Dairy skidded 2.26 percent, China Petroleum and Chemical (Sinopec) eased 0.26 percent, China Resources Land sank 1.73 percent, CITIC stumbled 2.01 percent, CNOOC surged 3.39 percent, Country Garden plummeted 6.47 percent, CSPC Pharmaceutical retreated 2.45 percent, Galaxy Entertainment dipped 1.01 percent, Hang Lung Properties soared 2.48 percent, Hong Kong & China Gas lost 1.35 percent, Industrial and Commercial Bank of China dropped 1.71 percent, Li Ning fell 1.18 percent, Longfor declined 2.65 percent, Meituan jumped 1.73 percent, New World Development slid 1.14 percent, Techtronic Industries surrendered 3.11 percent , Xiaomi Corporation advanced 0.95 percent, WuXi Biologics weakened 1.93 percent and Henderson Land was unchanged.

The lead from Wall Street is upbeat as the major averages opened higher on Wednesday and accelerated as the session progressed, ending near daily highs.

The Dow surged 596.40 points or 1.79 percent to finish at 33,891.35, while the NASDAQ soared 219.56 points or 1.62 percent to end at 13,752.02 and the S&P 500 jumped 80.28 points or 1.86 percent to close at 4,386.54.

The rally on Wall Street came on surging crude oil prices and a rebound by treasury yields.

Also, Federal Reserve Chair Jerome Powell told the House Financial Services Committee the Fed still believes it will be appropriate to raise interest rates later this month, citing inflation well above 2 percent and a strong labor market. The likely increase in interest rates comes even though Powell acknowledged that the Russia-Ukraine conflict has introduced significant uncertainty for the US economic outlook.

On the US economic front, payroll processor ADP said US private sector employment jumped much more than expected in February.

Crude oil prices climbed higher on Wednesday, extending gains amid concerns about global crude supplies due to the ongoing Russia-Ukraine conflict and data showing a drop in US crude inventories. West Texas Intermediate Crude oil futures for April ended higher by $ 7.19 or 7 percent at $ 110.60, the highest settlement since May 2011.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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