More Pain Predicted For Hong Kong Stock Market
(RTTNews) - The Hong Kong stock market has moved lower in consecutive trading days, stumbling almost 850 points or 4 percent along the way. The Hang Seng Index now sits just shy of the 20,320-point plateau and it may take further damage again on Wednesday.
The global forecast for the Asian markets is negative thanks to a combination of weak economic and earnings news, while profit taking may also be in order. The European and U.S. markets were down and the Asian bourses are expected to follow that lead.
The Hang Seng finished sharply lower on Tuesday with damage across the board, especially among the technology companies.
For the day, the index plunged 774.08 points or 3.67 percent to finish at 20,318.79 after trading between 20,154.71 and 21,095.01.
Among the actives, Alibaba Group tanked 5.09 percent, while Alibaba Health Info stumbled 4.77 percent, ANTA Sports dropped 2.95 percent, China Life Insurance surrendered 4.88 percent, China Mengniu Dairy plummeted 7.35 percent, China Resources Land declined 4.04 percent, CITIC sank 2.69 percent, CNOOC retreated 4.22 percent, CSPC Pharmaceutical plunged 6.15 percent, Galaxy Entertainment slumped 4.02 percent, Haier Smart Home lost 2.03 percent, Hang Lung Properties skidded 3.88 percent, Henderson Land fell 1.57 percent, Hong Kong & China Gas shed 2.25 percent, Industrial and Commercial Bank of China sank 2.28 percent, JD.com tumbled 4.92 percent, Lenovo lost 1.44 percent, Li Auto plunged 6.94 percent, Li Ning stumbled 5.20 percent, Meituan plummeted 6.97 percent, New World Development retreated 4.28 percent, Nongfu Spring surrendered 5.34 percent, Techtronic Industries slid 1.22 percent, Xiaomi Corporation dropped 2.54 percent and WuXi Biologics tanked 6.81 percent.
The lead from Wall Street is soft as the major averages opened mixed on Tuesday but quickly turned lower and saw all of them finish well under water.
The Dow tumbled 324.80 points or 0.75 percent to finish at 42,740..42, while the NASDAQ slumped 187.10 points or 1.01 percent to close at 18,315.59 and the S&P 500 sank 44.59 points or 0.76 percent to end at 5,815.26.
The pullback on Wall Street reflected profit taking as traders looked to cash in on recent strength in the markets after the Dow and S&P hit record closing highs on Monday.
Corporate earnings also weighed, led lower by the likes of UnitedHealth (UNH) and Citigroup (C), although Walgreens Boots Alliance (WBA) rallied on its results.
On the U.S. economic front, the Federal Reserve Bank of New York reported that regional manufacturing activity has returned to contraction in October.
Oil prices fell sharply on Tuesday as fears about supply disruptions faded on reports that Israel will avoid targeting Iran's oil sites. West Texas Intermediate crude oil futures for November sank $3.25 or 4.4 percent at $70.58 a barrel.