Mild Rebound Tipped For Hong Kong Shares

(RTTNews) - The Hong Kong stock market on Tuesday ended the eight-day winning streak in which it had surged almost 1,600 points or 7.1 percent. The Hang Seng Index now sits just beneath the 23,110-point plateau although it may tick back to the upside again on Wednesday.

The global forecast for the Asian markets is mixed to higher on better-than-expected inflation data. The European and U.S. markets were mostly higher and the Asian bourses figure to follow that lead.

The Hang Seng finished sharply lower on Tuesday thanks to profit taking across the board, especially among the technology, property and insurance companies.

For the day, the index tumbled 441.19 points or 1.87 percent to finish at 23,108.27 after trading between 23,070.48 and 23,494.44.

Among the actives, Alibaba Group plunged 3.89 percent, while Alibaba Health Info dropped 1.90 percent, ANTA Sports surrendered 3.59 percent, China Life Insurance cratered 2.43 percent, China Mengniu Dairy stumbled 2.68 percent, CITIC retreated 2.41 percent, CNOOC slid 0.46 percent, CSPC Pharmaceutical sank 0.55 percent, Galaxy Entertainment eased 0.31 percent, Haier Smart Home contracted 2.23 percent, Hang Lung Properties declined 2.37 percent, Henderson Land lost 0.82 percent, Hong Kong & China Gas fell 0.70 percent, Industrial and Commercial Bank of China jumped 1.27 percent, JD.com weakened 2.07 percent, Lenovo skidded 1.96 percent, Li Auto crashed 3.05 percent, Li Ning sank 1.28 percent, Meituan plummeted 4.91 percent, New World Development shed 1.18 percent, Nongfu Spring tumbled 2.53 percent, Techtronic Industries advanced 0.92 percent, Xiaomi Corporation tanked 3.85 percent, WuXi Biologics was down 0.43 percent and China Resources Land was unchanged.

The lead from Wall Street is mixed as the Dow opened in the red and remained there throughout, while the NASDAQ and S&P 500 were in positive territory from start to finish.

The Dow slumped 269.67 points or 0.64 percent to finish at 42,140.43, while the NASDAQ surged 301.74 points or 1.61 percent to close at 19,010.08 and the S&P 500 gained 42.36 points or 0.72 percent to end at 5,886.55.

The continued strength in the broader markets followed the release of a Labor Department report showing consumer prices in the U.S. rose less than expected in April.

The slightly tamer-than-expected inflation data eased concerns about President Donald Trump's new tariffs on U.S. trade partners leading to higher prices.

Meanwhile, a steep drop by shares of UnitedHealth (UNH) weighed on the Dow, with the healthcare giant plunging by 17.8 percent after the company suspended its full-year guidance.

Crude oil prices showed another significant move to the upside on Tuesday, reaching its highest closing level in almost a month on optimism about the outlook for demand. West Texas Intermediate crude for June delivery surged $1.72 or 2.8 percent to $63.67 a barrel.