Rebound Predicted For Hong Kong Stock Market

(RTTNews) - The Hong Kong stock market headed south again on Tuesday, one session after ending the four-day slide in which it had stumbled more than 750 points or 4.4 percent. The Hang Seng Index now rests just beneath the 17,400-point plateau although it's expected to bounce higher again on Wednesday.

The global forecast for the Asian markets is upbeat on better than expected U.S. inflation data, which fueled optimism over interest rates. The European and U.S. markets were firmly higher and the Asian bourses figure to follow suit.

The Hang Seng finished slightly lower on Tuesday as losses from the technology stocks and oil companies were mitigated by support from the financials and properties.

For the day, the index slid 29.35 points or 0.17 percent to finish at 17,396.86 after trading between 17,358.89 and 17,565.22.

Among the actives, Alibaba Group declined 1.80 percent, while ANTA Sports plummeted 4.94 percent, China Life Insurance soared 1.72 percent, China Mengniu Dairy lost 0.61 percent, China Resources Land surged 3.72 percent, CITIC advanced 0.58 percent, CNOOC sank 0.62 percent, Country Garden rallied 1.62 percent, CSPC Pharmaceutical fell 0.58 percent, Galaxy Entertainment added 0.48 percent, Hang Lung Properties jumped 1.71 percent, Henderson Land spiked 1.65 percent, Hong Kong & China Gas climbed 1.11 percent, Industrial and Commercial Bank of China collected 0.54 percent, JD.com slumped 1.24 percent, Lenovo slid 0.42 percent, Li Ning retreated 1.86 percent, Meituan plunged 2.96 percent, New World Development and Techtronic Industries both added 0.27 percent, Xiaomi Corporation tanked 2.22 percent, WuXi Biologics tumbled 2.05 percent and Alibaba Health Info was unchanged.

The lead from Wall Street is broadly positive as the major averages opened sharply higher on Tuesday and stayed that way throughout the session.

The Dow surged 489.83 points or 1.43 percent to finish at 34,827.70, while the NASDAQ rallied 326.64 points or 2.37 percent to end at 14,094.38 and the S&P 500 jumped 84.15 points or 1.91 percent to close at 4,495.70.

The rally on Wall Street came following the release of the Labor Department's highly anticipated report on consumer price inflation in October, which came in lower than expected.

The report may provide the Federal Reserve with confidence that inflation is on a downward trajectory, so further rate hikes may not be necessary.

Treasury yields moved sharply lower following the release of the report, adding to the buying interest on Wall Street.

Crude oil futures failed to hold gains and settled flat on Tuesday as traders reacted to a report from the International Energy Agency that oil markets won't be as tight as expected this quarter. West Texas Intermediate Crude oil futures for December settled at $78.26 a barrel, unchanged from the previous close.