Oversold Hang Seng Nonetheless Called Lower On Wednesday

(RTTNews) - The Hong Kong stock market has moved lower in back-to-back sessions, surrendering almost 900 points or 4.4 percent along the way. The Hang Seng Index now sits just beneath the 20,850-point plateau and it's looking at another soft start again on Wednesday.

The global forecast for the Asian markets suggests consolidation on renewed fears for the economy in the face of a Caovid-19 resurgence. The European markets were up and the U.S. bourses were down and the Asian markets are tipped to follow the latter lead.

The Hang Seng finished sharply lower on Tuesday following losses from the financials, properties and technology stocks.

For the day, the index plunged 279.46 points or 1.32 percent to finish at 20,844.74 after trading between 20,779.59 and 21,084.09.

Among the actives, AAC Technologies and Alibaba Health Info both crashed 3.39 percent, while Alibaba Group plummeted 5.44 percent, ANTA Sports surged 2.82 percent, China Life Insurance stumbled 0.65 percent, China Mengniu Dairy shed 0.53 percent, China Petroleum and Chemical (Sinopec) gained 0.29 percent, China Resources Land fell 0.42 percent, CITIC sank 0.61 percent, CNOOC slid 0.41 percent, Country Garden plunged 4.57 percent, CSPC Pharmaceutical added 0.48 percent, Galaxy Entertainment and Xiaomi Corporation both surrendered 1.55 percent, Hang Lung Properties declined 1.54 percent, Henderson Land rose 0.18 percent, Hong Kong & China Gas slumped 1.06 percent, Industrial and Commercial Bank of China skidded 0.71 percent, JD.com tumbled 1.79 percent, Lenovo dropped 0.56 percent, Li Ning lost 0.51 percent, Meituan tanked 1.98 percent, New World Development dipped 0.37 percent, Techtronic Industries retreated 1.45 percent and WuXi Biologics cratered 2.86 percent.

The lead from Wall Street is negative as the major averages opened higher on Tuesday, but a late slide pushed them into the red at the close.

The Dow dropped 192.51 points or 0.62 percent to finish at 30,981.51, while the NASDAQ sank 107.87 points or 0.95 percent to end at 11,264.73 and the S&P 500 lost 35.63 points or 0.92 percent to close at 3,818.80.

The late-day weakness on Wall Street came as traders looked ahead to the Labor Department's report on consumer price inflation for June.

Concerns about the emergence of a new, more infectious Covid-19 strain in several parts of the world also continued to weigh.

Investors also seemed to be moving money out of stocks ahead of what some expect to be a difficult quarterly earnings season.

The price of crude oil plummeted on Tuesday on concerns about the outlook for global demand due to recession fears and a renewed spike in Covid-19 cases. West Texas Intermediate for August delivery shed $8.25 or 7.9 percent to $95.84 a barrel, closing below $100 a barrel for the first time in two months.