Hong Kong Bourse May Reclaim Tuesday's Losses

(RTTNews) - The Hong Kong stock market on Tuesday halted the two-day winning streak in which it had advanced more than 350 points or 2 percent. The Hang Seng Index now rests just above the 17,110-point plateau although it's likely to open higher again on Wednesday.

The global forecast for the Asian markets is cautiously optimistic ahead of the Federal Reserve's monetary policy announcement later today. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The Hang Seng finished sharply lower on Tuesday following losses from the property stocks and technology companies.

For the day, the index tumbled 293.88 points or 1.69 percent to finish at 17,112.48 after trading between 17,042.10 and 17,337.70.

Among the actives, Alibaba Group slumped 2.20 percent, while Alibaba Health Info slid 1.28 percent, ANTA Sports declined 2.59 percent, China Life Insurance dipped 0.93 percent, China Mengniu Dairy skidded 2.11 percent, China Resources Land surrendered 3.14 percent, CITIC stumbled 2.49 percent, CNOOC fell 1.40 percent, Country Garden plunged 4.07 percent, CSPC Pharmaceutical jumped 1.94 percent, ENN Energy rallied 2.14 percent, Galaxy Entertainment slipped 1.02 percent, Hang Lung Properties eased 0.19 percent, Henderson Land lost 1.45 percent, Hong Kong & China Gas retreated 2.50 percent, Industrial and Commercial Bank of China collected 0.53 percent, JD.com shed 1.48 percent, Lenovo plummeted 5.31 percent, Li Ning sank 2.04 percent, Meituan tumbled 2.98 percent, New World Development was down 0.69 percent, Techtronic Industries weakened 2.13 percent, Xiaomi Corporation dropped 2.09 percent and WuXi Biologics tanked 3.76 percent.

The lead from Wall Street is positive as the major averages shook off early weakness on Tuesday, moving into positive territory by midday and ending firmly in the green.

The Dow advanced 123.91 points or 0.38 percent to finish at 33,052.87, while the NASDAQ added 61.76 points or 0.48 percent to close at 12,851.24 and the S&P 500 gained 26.98 points or 0.65 percent to end at 4,193.80.

The early weakness on Wall Street reflected a negative reaction to a Labor Department report showing that employment costs jumped slightly more than expected in the third quarter.

Selling pressure waned shortly after the start of trading, however, as traders seemed reluctant to make significant moves ahead of the Federal Reserve's monetary policy announcement later today.

The subsequent rebound by stocks came as traders resumed Monday's bargain hunting, as stocks remain at relatively reduced levels despite the rally seen in the previous session.

Oil prices dropped on Tuesday, and posted a monthly loss as well, as concerns about the outlook for energy demand and a stronger dollar weighed on the commodity. West Texas Intermediate crude oil futures for December fell $1.29 or 1.6 percent at 81.02 a barrel, the lowest settlement in two months. WTI crude futures shed nearly 11 percent in October.

Closer to home, Hong Kong will provide September figures for retail sales later today; in August, sales were up 13.7 percent on year.