Profit Taking Expected For Hong Kong Stock Market

(RTTNews) - The Hong Kong stock market moved emphatically back to the upside on Tuesday, one day after snapping the six-day winning streak in which it had surged more than 1,150 points or 6.4 percent. The Hang Seng Index now sits just above the 19,000-point plateau although it's expected to see a downward correction following Tuesday's rally that was fueled by Chinese stimulus.

The global forecast for the Asian markets is positive on continued optimism over the outlook for interest rates. The European and U.S. markets saw mild upside and the Asian bourses figure to open in similar fashion, although some of the more oversold markets may correct to the downside.

The Hang Seng finished with huge gains on Tuesday with support in every sector, especially the financials, properties and technology stocks.

For the day, the index skyrocketed 753.45 points or 4.13 percent to finish at 19,000.56 after trading between 18,532.28 and 19,002.05.

Among the actives, Alibaba Group rallied 6.05 percent, while Alibaba Health Info soared 7.01 percent, ANTA Sports strengthened 5.51 percent, China Life Insurance spiked 6.89 percent, China Mengniu Dairy surged 7.40 percent, China Resources Land jumped 5.91 percent, CITIC accelerated 6.50 percent, CNOOC improved 4.11 percent, CSPC Pharmaceutical advanced 5.07 percent, Galaxy Entertainment added 3.62 percent, Haier Smart Home climbed 5.33 percent, Hang Lung Properties gained 3.33 percent, Henderson Land rose 0.99 percent, Hong Kong & China Gas increased 2.20 percent, Industrial and Commercial Bank of China rallied 5.86 percent, JD.com skyrocketed 10.17 percent, Lenovo strengthened 3.12 percent, Li Auto surged 10.11 percent, Li Ning spiked 6.72 percent, Meituan spiked 5.27 percent, New World Development gained 2.17 percent, Nongfu Spring soared 8.06 percent, Techtronic Industries slumped 1.57 percent, Xiaomi Corporation accelerated 3.16 percent and WuXi Biologics gathered 1.26 percent.

The lead from Wall Street is cautiously optimistic as the major averages opened slightly higher on Tuesday, bounced back and forth across the line and finally ended mixed and little changed.

The Dow added 83.57 points or 0.20 percent to finish at 42,208.22, while the NASDAQ gained 100.25 points or 0.56 percent to end at 18,074.52 and the S&P 500 rose 14.36 points or 0.25 percent to close at 5,732.93.

The strength that emerged on Wall Street came on continued optimism for more rate cuts from the Federal Reserve in the coming months.

The upside was limited by concerns for the economy after the Conference Board reported a notable deterioration in U.S. consumer confidence in September.

Oil prices rallied on Tuesday as concerns about the outlook for demand eased after the Chinese central bank announced a slew of stimulus measures to boost the nation's economy. An escalation in tensions in the Middle East, and reports of a new storm in Gulf of Mexico also contributed to the rise in oil prices. West Texas Intermediate Crude oil futures ended up by $1.19 or about 1.7 percent at $71.56 a barrel.