Hong Kong Shares May Bounce Higher Again On Monday

(RTTNews) - The Hong Kong stock market has alternated between positive and negative finishes through the last four trading days since the end of the three-day slide in which it had given up almost 600 points or 2.5 percent. The Hang Seng now sits just above the 23,970-point plateau although it's expected to find renewed support on Monday.

The global forecast for the Asian markets is upbeat thanks to easing crude oil prices and treasury yields and an improved outlook for interest rates. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.

The Hang Seng finished sharply lower on Friday with damage across the board, especially among the financial shares, technology stocks, gaming companies and aviation stocks.

For the day, the index plummeted 640.98 points or 2.60 percent to finish at 23,972.29 after trading between 23,865.33 and 24,099.73.

The lead from Wall Street is firm as the major averages opened higher on Friday and remained in the green throughout the trading day.

The Dow climbed 250.40 points or 0.49 percent to finish at 51,176.96, while the NASDAQ jumped 319.27 points or 1.19 percent and the S&P 500 gained 56.27 points or 0.73 percent to end at 7,722.72.

For the week, the NASDAQ added 0.5 percent, while the S&P fell 0.3 percent and the Dow slumped 1.3 percent.

The early rally on Wall Street came followed the release of a closely watched Labor Department report showing much weaker than expected job growth in September.

While the data may raise some concerns about the strength of the economy, the release also contributed to a steep drop by treasury yields. The data was seen as reducing the likelihood that the Federal Reserve will once again raise interest rates at its next meeting later this month.

Crude oil prices tumbled on Friday following reports that the European Union may release diesel reserves to help cool surging fuel prices linked to the Iran war. West Texas Intermediate crude for November delivery was down $1.17 or 1.3 percent to $91.70 per barrel.