Hang Seng May Break Resistance At 26,000 Points

(RTTNews) - The Hong Kong stock market has moved higher in two straight sessions, collecting almost 680 points or 2.7 percent along the way. The Hang Seng Index now rests just beneath the 25,900-point plateau and it may extend its gains on Wednesday.

The global forecast for the Asian markets is positive on an improved outlook for interest rates. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.

The Hang Seng finished modestly higher on Tuesday as gains from the technology stocks and financial shares were capped by weakness from the property sector.

For the day, the index climbed 178.05 points or 0.69 percent to finish at 25,894.55 after trading between 25,740.54 and 26,069.22.

Among the actives, Alibaba Group accelerated 2.14 percent, while Alibaba Health Info surged 4.36 percent, ANTA Sports dropped 0.84 percent, China Life Insurance rallied 2.22 percent, China Mengniu Dairy lost 0.21 percent, China Resources Land climbed 0.79 percent, CITIC improved 0.50 percent, CNOOC perked 0.09 percent, CSPC Pharmaceutical spiked 2.78 percent, Galaxy Entertainment sank 0.46 percent, Haier Smart Home added 0.38 percent, Hang Lung Properties stumbled 1.76 percent, Henderson Land eased 0.13 percent, Hong Kong & China Gas shed 0.27 percent, Industrial and Commercial Bank of China collected 0.15 percent, Lenovo gained 0.31 percent, Li Auto strengthened 0.91 percent, Li Ning vaulted 1.07 percent, Meituan gathered 0.10 percent, New World Development dipped 0.14 percent, Nongfu Spring fell 0.20 percent, Techtronic Industries jumped 1.31 percent, Xiaomi Corporation soared 4.35 percent, WuXi Biologics rose 0.19 percent and JD.com was unchanged.

The lead from Wall Street is upbeat as the major averages opened mixed on Tuesday but then trended to the upside throughout the session, ending near daily highs.

The Dow surged 664.18 points or 1.43 percent to finish at 47,112.45, while the NASDAQ added 153.59 points or 0.67 percent to end at 23,025.59 and the S&P 500 climbed 60.76 points or 0.91 percent to close at 6,765.88.

The strength that emerged on Wall Street reflected renewed optimism about the outlook for interest rates following recent dovish comments from Federal Reserve officials as well as the latest U.S. economic data.

The Commerce Department said retail sales in the U.S. increased less than expected in September, while the Conference Board also released a report showing a substantial deterioration by U.S. consumer confidence in November.

Payroll processor ADP released a report showing U.S. private sector employers shed an average of 13,500 jobs per week in the four weeks ending November 8th compared to an average loss of 2,500 jobs in the previous four-week period.

CME Group's FedWatch Tool indicates the chances the Fed will cut interest rates by another quarter point next month have surged to 82.7 percent from 50.1 percent a week ago.

Crude oil prices slumped on Tuesday on reports that a revised Russia-Ukraine peace plan has been accepted by Ukraine. West Texas Intermediate crude for January delivery was down $0.96 or 1.61 percent at $57.89 per barrel.