The Hong Kong stock market on Tuesday snapped the two-day winning streak in which it had advanced more than 500 points or 1.8 percent. The Hang Seng Index now rests just above the 28,690-point plateau although it figures to bounce higher again on Wednesday.
The global forecast for the Asian is firm on optimism ahead of earnings season and a bump in crude oil prices. The European and U.S. markets were up and the Asian markets should follow suit.
The Hang Seng finished slightly lower on Tuesday as losses from the pharmaceuticals were offset by gains from the oil and financial stocks.
For the day, the index eased 6.25 points or 0.02 percent to finish at the daily low of 28,682.25 after peaking at 28,981.93.
Among the actives, China Mengniu Dairy plummeted 3.93 percent, while CSPC Pharmaceuticals plunged 3.06 percent, WH Group tumbled 2.81 percent, CNOOC spiked 2.52 percent, Galaxy Entertainment jumped 1.49 percent, China Life climbed 1.12 percent, BOC Hong Kong collected 0.96 percent, AIA Group skidded 0.88 percent, China Petroleum and Chemical (Sinopec) advanced 0.85 percent, Industrial and Commercial Bank of China perked 0.71 percent, CITIC dropped 0.56 percent, Henderson Land added 0.48 percent, China Mobile and Ping An Insurance both gained 0.21 percent, New World Development dipped 0.18 percent and Hong Kong & China Gas was unchanged.
The lead from Wall Street is upbeat as stocks saw further upside on Tuesday as the S&P 500 reached its best closing level in five months.
The Dow jumped 143.07 points or 0.58 percent to 24,919.66, while the NASDAQ added 3.00 points or 0.04 percent to 7,759.20 and the S&P 500 rose 9.67 points or 0.35 percent to 2,793.84.
The continued strength came as optimism about the upcoming earnings season overshadowed recent trade concerns.
Beverage giant PepsiCo (PEP) released its second quarter results with earnings that beat the street. Financial giants Citigroup (C), JPMorgan Chase (JPM) and Wells Fargo (WFC) are due to report results on Friday.
Oil service stocks showed a strong move to the upside, driving the Philadelphia Oil Service Index up by 1.1 percent. Th at support came amid an increase in the price of crude oil for August delivery, which rose $0.26 to $74.11 a barrel.
by P2PNews Staff Writer