Higher Open Called For Hong Kong Stock Market

RTTNews · 06 Jul 2022 146 Views

The Hong Kong stock market on Tuesday ended the three-day losing streak in which it had declined more than 570 points or 2.7 percent. The Hang Seng Index now sits just above the 21,850-point plateau and it's looking at another green light for Wednesday's trade.

The global forecast for the Asian markets is inconsistent, with gains from the technology stocks likely to be offset by weakness from the energy producers. The European markets were down and the U.S. bourses were mixed and the Asian markets figure to follow the latter lead.

The Hang Seng finished slightly higher on Tuesday following mixed performances from the properties, oil companies and technology stocks.

For the day, the index added 22.72 points or 0.10 percent to finish at 21,853.07 after trading between 21,799.19 and 22,198.51.

Among the actives, AAC Technologies tanked 3.17 percent, while Alibaba Group jumped 1.77 percent, Alibaba Health Info soared 4.74 percent, ANTA Sports spiked 2.55 percent, China Life Insurance collected 0.30 percent, China Mengniu Dairy added 0.65 percent, China Petroleum and Chemical (Sinopec) shed 0.28 percent, China Resources Land and Henderson Land both advanced 0.69 percent, CITIC rallied 1.86 percent, CNOOC climbed 1.17 percent, Country Garden dipped 0.15 percent, CSPC Pharmaceutical eased 0.12 percent, Galaxy Entertainment sank 0.32 percent, Hang Lung Properties slumped 0.41 percent, Hong Kong & China Gas strengthened 1.54 percent, Industrial and Commercial Bank of China lost 0.23 percent, JD.com retreated 0.69 percent, Lenovo declined 0.96 percent, Li Ning gained 0.56 percent, Meituan tumbled 1.74 percent, New World Development fell 0.18 percent, Techtronic Industries accelerated 2.05 percent, Xiaomi Corporation plunged 3.47 percent and WuXi Biologics surged 6.51 percent.

The lead from Wall Street is mixed to higher as the major averages opened with deep losses on Tuesday; they improved throughout the session, although the Dow remained stuck in the red.

The Dow shed 129.44 points or 0.42 percent to finish at 30,967.82, while the NASDAQ surged 194.39 points or 1.75 percent to end at 11,322.24 and the S&P 500 rose 6.06 points or 0.16 percent to end at 3,831.39.

Growth fears outweighed news that U.S. President Joe Biden may announce a rollback of some U.S. tariffs on Chinese imports.

Investors also looked ahead to the release of the minutes of the central bank's latest policy meeting and the non-farm payrolls data, due out later in the week.

In economic news, the Labor Department said factory orders increased more than expected in May.

Crude oil prices plunged sharply Tuesday on concerns about the outlook for energy demand following a surge in Covid cases in China, while fears about Fed tightening, a strong greenback and a possible global slowdown also weighed on oil prices. West Texas Intermediate Crude oil futures for August plummeted $8.93 or 8.2 percent at $99.50 a barrel.

Market Analysis