Oversold Hong Kong Bourse Still Called To Open Lower

(RTTNews) - The Hong Kong stock market has finished lower in four straight sessions, tumbling more than 1,250 points or 7 percent along the way. Now at a fresh 11-year low, the Hang Seng Index sits just above the 16,830-point plateau and it's tipped to open under pressure again on Wednesday.

The global forecast for the Asian markets is mixed to lower, with a dose of volatility as bargain hunting may give the oversold bourses a lift - but the gains may evaporate as the day progresses. The European markets were down and the U.S. bourses were mixed and the Asian markets figure to split the difference.

The Hang Seng finished sharply lower on Tuesday with losses in all sectors, especially among the technology and financial sectors.

For the day, the index tumbled 384.30 points or 2.23 percent to finish at 16,832.36 after trading between 16,789.97 and 17,206.51.

Among the actives, Alibaba Group retreated 3.43 percent, while Alibaba Health Info fell 0.84 percent, ANTA Sports declined 3.03 percent, China Life Insurance shed 1.22 percent, China Mengniu Dairy rose 0.16 percent, China Petroleum and Chemical (Sinopec) slid 0.59 percent, China Resources Land slumped 2.03 percent, CNOOC dropped 1.53 percent, Country Garden tumbled 4.33 percent, CSPC Pharmaceutical lost 1.18 percent, Galaxy Entertainment surrendered 3.34 percent, Hang Lung Properties retreated 2.12 percent, Henderson Land rallied 1.39 percent, Hong Kong & China Gas dipped 0.58 percent, Industrial and Commercial Bank of China sank 1.35 percent, JD.com tanked 5.00 percent, Lenovo eased 0.37 percent, Li Ning weakened 1.89 percent, Longfor plummeted 8.47 percent, Meituan plunged 6.14 percent, New World Development was down 0.49 percent, Techtronic Industries surged 3.55 percent, Xiaomi Corporation stumbled 2.02 percent, WuXi Biologics skidded 1.60 percent and CITIC was unchanged.

The lead from Wall Street ends up weak as the major averages saw considerable volatility on Tuesday, opening lower before rallying and then handing back the gains to finish mixed.

The Dow rose 36.31 points or 0.12 percent to finish at 29,239.19, while the NASDAQ tumbled 115.91 points or 1.10 percent to end at 10,426.19 and the S&P 500 sank 23.55 points or 0.65 percent to close at 3,588.84.

The early weakness on Wall Street was due to concerns about rising interest rates and the impact of high borrowing costs on corporate earnings and economic growth. A downward revision in the global economic growth forecast by the International Monetary Fund also weighed.

The markets rebounded when treasury yields ticked lower, but stocks faltered past mid-afternoon after the Bank of England said that its market intervention will be over soon.

Oil futures fell on Tuesday, extending losses from the previous session on concerns about outlook for energy demand amid the rising possibility of a global recession. A surge in COVID-19 cases in China and fears of further monetary policy tightening also weighed. West Texas Intermediate Crude oil futures for November sank $1.78 or 2 percent at $89.35 a barrel.