Hang Seng May Crack Resistance At 25,000 On Tuesday

(RTTNews) - The Hong Kong stock market on Monday wrote a finish to the four-day losing streak in which it had stumbled more than 1,050 points or 4 percent. The Hang Seng Index now rests just above the 24,730-point plateau and it's expected to open higher again on Tuesday.

The global forecast for the Asian markets is positive on bargain hunting and optimism for an interest rate cut. The European and U.S. markets were sharply higher and the Asian bourses figure to follow that lead.

The Hang Seng finished modestly higher on Monday following gains from the financial shares, property stocks and technology companies.

For the day, the index rallied 225.64 points or 0.92 percent to finish at 24,733.45 after trading between 24,372.51 and 24,748.76.

Among the actives, Alibaba Group slumped 0.60 percent, while Alibaba Health Info spiked 1.87 percent, ANTA Sports jumped 1.56 percent, China Life Insurance increased 0.50 percent, China Mengniu Dairy accelerated 1.73 percent, China Resources Land advanced 0.91 percent, CITIC strengthened 1.03 percent, CNOOC sank 0.54 percent, CSPC Pharmaceutical stumbled 2.33 percent, Galaxy Entertainment surged 2.32 percent, Hang Lung Properties climbed 1.01 percent, Henderson Land expanded 1.13 percent, Hong Kong & China Gas gathered 0.29 percent, Industrial and Commercial Bank of China collected 1.34 percent, JD.com was up 0.24 percent, Lenovo skyrocketed 4.95 percent, Li Auto added 0.70 percent, Li Ning perked 0.12 percent, Meituan gained 0.65 percent, New World Development improved 0.77 percent, Nongfu Spring rose 0.56 percent, Techtronic Industries picked up 0.16 percent, Xiaomi Corporation soared 2.15 percent, WuXi Biologics lost 0.41 percent and Haier Smart Home was unchanged.

The lead from Wall Street is strong as the major averages opened solidly higher on Monday and closed in similar fashion, cutting into Friday's steep losses.

The Dow jumped 585.06 points or 1.34 percent to finish at 44,173.64, while the NASDAQ rallied 403.45 points or 1.95 percent to end at 21,053.58 and the S&P 500 gained 91.93 points or 1.47 percent to close at 6,329.94.

The rally on Wall Street came as traders looked to pick up stocks at reduced levels following the recent sell-off, which saw the NASDAQ and the S&P 500 pull back well off their record highs.

The steep drop last Friday came amid concerns about the economic impact of President Donald Trump's new tariffs, weaker than expected jobs data and a slump by shares of Amazon (AMZN).

Optimism the weak jobs data will lead the Federal Reserve to lower interest rates next month also contributed to the buying interest. According to CME Group's FedWatch Tool, the chances of a quarter point rate cut in September have jumped to 91.9 percent from 63.1 percent a week ago.

Crude oil continued to decline on Monday thanks to oversupply concerns and fears of a tariff-induced slowdown by the global economy. West Texas Intermediate crude for September delivery was down $1.06 or 1.57 percent at $66.27 per barrel.