Hong Kong Bourse May Stop The Bleeding On Thursday

(RTTNews) - The Hong Kong stock market has tracked lower in two straight sessions, slumping more than 300 points or 1.8 percent along the way. The Hang Seng Index now rests just above the 17,100-point plateau although it's likely to find support on Thursday.

The global forecast for the Asian markets is positive on optimism over the outlook for interest rates. The European and U.S. markets were solidly higher and the Asian markets are expected to open in similar fashion.

The Hang Seng finished slightly lower on Wednesday following a mixed picture from the technology stocks and support from the property sector.

For the day, the index sank 10.70 points or 0.06 percent to finish at 17,101.78 after trading between 16,979.26 and 17,188.85.

Among the actives, Alibaba Group dropped 0.56 percent, while China Mengniu Dairy rallied 1.17 percent, China Resources Land skidded 0.68 percent, CITIC sank 0.45 percent, CNOOC and Hang Lung Properties both spiked 1.74 percent, Country Garden was up 0.15 percent, CSPC Pharmaceutical fell 0.15 percent, ENN Energy advanced 0.84 percent, Galaxy Entertainment rose 0.34 percent, Henderson Land added 0.74 percent, Hong Kong & China Gas gained 0.37 percent, Industrial and Commercial Bank of China climbed 1.06 percent, JD.com slumped 1.05 percent, Lenovo tumbled 1.76 percent, Li Ning surged 4.37 percent, Meituan retreated 1.45 percent, New World Development soared 2.79 percent, Techtronic Industries shed 0.42 percent, Xiaomi Corporation jumped 1.43 percent, WuXi Biologics declined 1.44 percent and Alibaba Health Info, ANTA Sports and China Life Insurance were unchanged.

The lead from Wall Street is strong as the major averages opened flat on Wednesday but took off as the day progressed, ending near session highs.

The Dow surged 221.71 points or 0.67 percent to finish at 33,274.58, while the NASDAQ rallied 210.23 points or 1.64 percent to end at 13,061.47 and the S&P 500 climbed 44.06 points or 1.05 percent to close at 4,237.86.

The strength on Wall Street came as stocks reacted positively to the Federal Reserve's widely expected decision to leave interest rates unchanged.

The accompanying statement suggested the Fed is still considering additional rate hikes in an effort to return inflation to its 2 percent objective, but traders seem optimistic the recent cycle of increase is over.

In economic news, payroll processor ADP said private sector employment in the U.S. increased less than expected in October. Also, the Institute for Supply Management said manufacturing activity in the U.S. unexpectedly contracted at a faster rate last month.

Oil futures settled lower on Wednesday, weighed down by concerns that higher borrowing costs will likely hurt growth and the outlook for fuel demand. West Texas Intermediate Crude oil futures for December ended down $$0.58 or 0.7 percent at $80.44 a barrel.

Closer to home, the Hong Kong Monetary Authority will wrap up its monetary policy meeting later today and then announce its decision on interest rates; the HKMA is expected to keep its benchmark lending rate unchanged at 5.75 percent.