Oversold Hang Seng Called Higher On Tuesday

(RTTNews) - The Hong Kong stock market has moved lower in five straight sessions, slumping more than 800 points or 4.6 percent in that span. The Hang Seng Index now sits just beneath the 17,200-point plateau although it's expected to halt its slide on Tuesday. The global forecast for the Asian markets is positive on anticipated bargain hunting and on the outlook for interest rates. The European and U.S. markets were solidly higher and the Asian bourses are tipped to open in similar fashion.

The Hang Seng finished sharply lower on Monday following losses from the financial shares, properties and energy companies, while the technology stocks were mixed. For the day, the index tumbled 247.34 points or 1.42 percent to finish at 17,196.96 after trading between 17,067.45 and 17,305.91. Among the actives, Alibaba Group skidded 1.88 percent, while Alibaba Health Info fell 1.38 percent, ANTA Sports dipped 0.57 percent, China Life Insurance stumbled 2.43 percent, China Mengniu Dairy surrendered 3.41 percent, China Resources Land plunged 3.85 percent, CITIC slid 1.34 percent, CNOOC tanked 3.83 percent, CSPC Pharmaceutical slumped 2.31 percent, Galaxy Entertainment lost 1.54 percent, Haier Smart Home plummeted 4.71 percent, Hang Lung Properties declined 2.49 percent, Henderson Land sank 1.68 percent, Hong Kong & China Gas eased 0.32 percent, Industrial and Commercial Bank of China dipped 1.19 percent, JD.com tumbled 2.97 percent, Lenovo dropped 1.83 percent, Li Auto shed 1.64 percent, Li Ning retreated 2.95 percent, Meituan slipped 0.59 percent, New World Development was down 0.44 percent, Techtronic Industries gained 0.39 percent, Xiaomi Corporation added 0.43 percent, WuXi Biologics rallied 2.53 percent and CLP Holdings was unchanged.

The lead from Wall Street is upbeat as the major averages opened higher on Monday and remained well in the green throughout the trading day.

The Dow surged 484.18 points or 1.20 percent to finish at 40,829.59, while the NASDAQ rallied 193.77 points or 1.16 percent to close at 16,884.60 and the S&P 500 climbed 62.63 points or 1.16 percent to end at 5,471.05.

The rally on Wall Street came as traders looked to pick up stocks at reduced levels following the steep drop seen last week, which dragged the NASDAQ down to its lowest levels in nearly a month.

Optimism the Federal Reserve will lower interest rates later this month has also contributed to the strength on Wall Street, despite lingering concerns about the outlook for the U.S. economy.

CME Group's FedWatch Tool is currently indicating a 73 percent chance the Fed will lower rates by 25 basis points and a 29 percent chance of a 50 basis point rate cut.

Oil prices climbed higher Monday on the possibility of weather-related production issues in the the Gulf of Mexico, and on OPEC's decision to delay a production boost originally scheduled to begin in October. West Texas Intermediate Crude oil futures for October ended up by $1.04 or 1.54 percent at $68.71 a barrel.