The Hong Kong stock market on Tuesday wrote a finish to the six-day winning streak in which it had soared more than 1,600 points or 5.4 percent. The Hang Seng Index now rests just above the 31,150-point plateau and it may see more selling pressure again on Wednesday.
The global forecast for the Asian is slightly soft, with concerns over U.S. treasury yields tempered by support from crude oil. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to follow the latter lead.
The Hang Seng finished sharply lower on Tuesday following losses from the financials, properties, casinos and insurance companies.
For the day, the index tumbled 389.05 points or 1.23 percent to finish at the daily low of 31,152.03 after peaking at 31,573.18.
Among the actives, AAC Technology plummeted 4.92 percent, while Tencent Holdings plunged 3.35 percent, China Mengniu Dairy tumbled 2.52 percent, Galaxy Entertainment skidded 2.22 percent, Industrial and Commercial Bank of China dropped 1.72 percent, AIA Group declined 1.68 percent, China Petroleum and Chemical (Sinopec) retreated 1.46 percent, Henderson Land shed 0.87 percent, Hong Kong & China Gas lost 0.81 percent, Sands China fell 0.74 percent, China Life slid 0.66 percent, WH Group and BOC Hong Kong both dipped 0.61 percent, New World Development eased 0.50 percent, CNOOC added 0.43 percent, Ping An Insurance was down 0.38 percent and Lenovo Group was unchanged.
The lead from Wall Street is negative as stocks moved lower on Tuesday, as profit taking erased gains from previous sessions.
The Dow slumped 193.00 points or 0.78 percent to 24,706.41, the NASDAQ fell 59.69 points or 0.81 percent to 7,351.63 and the S&P 500 slid 18.68 points or 0.68 percent to 2,711.45.
The weakness came when traders reacted to a jump in U.S. treasury yields, with the yield on the benchmark ten-year note surging up to its highest levels since 2011.
In economic news, the Commerce Department said retail sales increased in line with estimates in April. Also, the National Association of Home Builders noted an unexpected improvement in homebuilder confidence in May.
Crude oil futures rose Tuesday, even as U.S. stocks and other commodities melted down. Oil has surged to four-year highs amid speculation that OPEC will continue to cut production. West Texas Intermediate oil for June ended up 35 cents or 0.5 percent to finish at $71.31/bbl.
by P2PNews Staff Writer