Hang Seng May Test Resistance At 18,000 Points

(RTTNews) - The Hong Kong stock market has moved higher in consecutive trading days, collecting more than 220 points or 1.2 percent along the way. The Hang Seng Index now sits just beneath the 17,850-point plateau and it's looking at another firm start again on Thursday.

The global forecast for the Asian markets is upbeat, with technology stocks expected to fuel the rally. The European and U.S. markets were up and the Asian markets are expected to open in similar fashion.

The Hang Seng finished modestly higher on Wednesday following gains from the financial shares and property stocks and a mixed performance from the technology companies.

For the day, the index gained 54.91 points or 0.31 percent to finish at 17,845.92 after trading between 17,730.79 and 18,000.53.

Among the actives, Alibaba Group eased 0.06 percent, while Alibaba Health Info tumbled 1.82 percent, ANTA Sports skyrocketed 9.72 percent, China Life Insurance collected 0.71 percent, China Mengniu Dairy retreated 1.60 percent, China Resources Land rose 0.48 percent, CITIC sank 0.40 percent, Country Garden perked 0.14 percent, CSPC Pharmaceutical dropped 0.35 percent, Galaxy Entertainment plummeted 2.45 percent, Hang Lung Properties spiked 1.38 percent, Henderson Land soared 1.68 percent, Hong Kong & China Gas gained 0.52 percent, Industrial and Commercial Bank of China added 0.59 percent, JD.com shed 0.23 percent, Lenovo tallied 1.18 percent, Li Ning slumped 1.10 percent, Meituan climbed 0.85 percent, New World Development was up 0.12 percent, Techtronic Industries plunged 2.41 percent, Xiaomi Corporation surged 2.26 percent, WuXi Biologics jumped 1.36 percent and CNOOC and Nongfu Spring were unchanged.

The lead from Wall Street is positive as the major averages opened higher and accelerated as the day progressed, ending near session highs.

The Dow gained 184.15 points or 0.54 percent to finish at 34,472.98, while the NASDAQ spiked 215.16 points or 1.59 percent to end at 13,721.03 and the S&P 500 added 48.46 points or 1.10 percent to close at 4,436.01.

The spike by the Nasdaq came as tech stocks rallied ahead of earnings news from Nvidia (NVDA), and the chipmaker released strong fiscal second quarter results after the close of trading.

A steep drop by bond yields also generated some buying interest, as the 10-year yield pulled back further off highest levels in well over 15 years.

In economic news, S&P noted a slowdown in the pace service sector activity and a contraction in manufacturing activity in August. Also, the Commerce Department said new home sales rebounded much more than expected in July.

Crude oil futures settled lower Wednesday amid concerns about the outlook for oil demand after data showed a decline in global manufacturing activity. West Texas Intermediate Crude oil futures for October ended lower by $0.75 or 0.9 percent at $78.89 a barrel.

Closer to home, Hong Kong will provide July figures for imports and exports later today. Imports are expected to sink 8.2 percent on month after dropped 12.3 percent in June. Exports are called lower by an annual 13.6 percent after shedding 11.4 percent in the previous month.