Overbought Hang Seng Nonetheless Called Higher

(RTTNews) - The Hong Kong stock market has tracked higher in eight straight sessions, soaring almost 1,600 points or 7.1 percent along the way. The Hang Seng Index now sits just beneath the 23,550-point plateau and it's expected to at least open in positive territory on Tuesday.

The global forecast for the Asian markets is upbeat on optimism over easing tariff concerns. The European and U.S. markets were solidly higher and the Asian bourses are expected to open in similar fashion.

The Hang Seng finished sharply higher on Monday with gains across the board, especially among the financials, properties and technology stocks.

For the day, the index surged 681.72 points or 2.98 percent to finish at 23,549.46 after trading between 22,982.91 and 23,685.34.

Among the actives, Alibaba Group soared 6.15 percent, while Alibaba Health Info rallied 5.82 percent, ANTA Sports increased 1.97 percent, China Life Insurance accelerated 4.97 percent, China Resources Land climbed 2.94 percent, CITIC strengthened 4.18 percent, CNOOC advanced 2.72 percent, CSPC Pharmaceutical plummeted 4.18 percent, Galaxy Entertainment jumped 4.23 percent, Haier Smart Home surged 8.33 percent, Hang Lung Properties improved 2.43 percent, Henderson Land added 1.87 percent, Hong Kong & China Gas perked 0.14 percent, Industrial and Commercial Bank of China collected 0.73 percent, JD.com spiked 6.39 percent, Lenovo skyrocketed 9.58 percent, Li Auto surged 7.23 percent, Li Ning gained 1.69 percent, Meituan climbed 2.48 percent, New World Development accelerated 6.03 percent, Nongfu Spring rallied 3.53 percent, Techtronic Industries soared 6.66 percent, Xiaomi Corporation stumbled 1.46 percent, WuXi Biologics rose 0.65 percent and China Mengniu Dairy was unchanged.

The lead from Wall Street is broadly positive as the major averages opened firmly higher on Monday and remained well in the green throughout the trading day.

The Dow surged 1,160.72 points or 2.81 percent to finish at 42,410.10, while the NASDAQ soared 779.43 points or 4.35 percent to close at 18,708.34 and the S&P 500 rallied 184.28 points or 3.26 percent to end at 5,844.19.

The rally on Wall Street came following news of a U.S.-China trade deal that drastically reduces the massive tariffs on each other's goods.

The White House said the agreement calls for the U.S. and China to each lower tariffs by 115 percent while retaining an additional 10 percent tariff. The U.S. will retain tariffs imposed in response to the fentanyl national emergency, resulting in an effective tariff rate on Chinese goods of 30 percent.

The White House said the 34 percent reciprocal tariffs on U.S. and Chinese goods will be suspended for 90 days beginning May 14. Both nations also agreed to establish a mechanism to continue important discussions about trade and economics, the White House said.

Crude oil showed another strong move to the upside on Monday, riding optimism about the outlook for demand after the U.S. and China reached their trade deal. West Texas Intermediate crude for June delivery jumped $0.93 or 1.5 percent to $61.95 a barrel.