Oversold Hang Seng Expected To Find Support On Tuesday

(RTTNews) - The Hong Kong stock market has moved lower in three sessions, dropping more than 3,380 points or 14.8 percent along the way. The Hang Seng Index now sits just beneath the 19,830-point plateau although it figures to bounce higher on Tuesday.

The global forecast for the Asian markets suggests bargain hunting after a couple of sessions of extremely heavy losses, The European markets were sharply lower and the U.S. bourses were mixed but the Asian markets are due to tick higher.

The Hang Seng finished with enormous losses on Monday with damage in every sector, although the technology stocks were hit particularly hard.

For the day, the index cratered 3,021.51 points or 13.22 percent to finish at 19,828.30 after trading between 19,706.03 and 21,047.83.

Among the actives, Alibaba Group crashed 17.98 percent, while Alibaba Health Info surrendered 17.23 percent, ANTA Sports lost 11.49 percent, China Life Insurance stumbled 16.32 percent, China Mengniu Dairy contracted 7.71 percent, China Resources Land slipped 9.51 percent, CITIC dropped 12.63 percent, CNOOC retreated 15.29 percent, CSPC Pharmaceutical weakened 14.29 percent, Galaxy Entertainment sank 12.44 percent, Haier Smart Home skidded 13.45 percent, Hang Lung Properties shed 11.70 percent, Henderson Land dipped 6.90 percent, Hong Kong & China Gas eased 5.51 percent, Industrial and Commercial Bank of China gave away 7.69 percent, JD.com tumbled 15.51 percent, Lenovo plunged 22.89 percent, Li Auto tanked 17.85 percent, Li Ning fell 10.17 percent, Meituan declined 14.95 percent, New World Development slumped 13.59 percent, Nongfu Spring was down 5.81 percent, Techtronic Industries slid 10.10 percent, Xiaomi Corporation cratered 20.59 percent and WuXi Biologics plummeted 26.44 percent.

The lead from Wall Street is murky as the major averages opened lower on Monday but then hugged the line on both sides before finishing mixed and little changed.

The Dow tumbled 349.26 points or 0.91 percent to finish at 37,965.60, while the NASDAQ added 15.48 points or 0.10 percent to close at 15,603.26 and the S&P 500 fell 11.83 points or 0.23 percent to end at 5,062.25.

Stocks initially extended the sell-off seen over the two previous sessions amid ongoing concerns about the impact of President Donald Trump's new tariffs and retaliatory moves by U.S. trade partners.

Adding to worries about a global trade war, Trump threatened to impose an additional 50 percent tariff on Chinese goods unless the country withdraws its new 34 percent tariff on U.S. goods.

Selling pressure waned shortly after the start of trading, however, leading some traders to pick up stocks at reduced levels after the major averages hit their lowest intraday levels in over a year.

Crude oil prices tumbled again on Monday, extending the nosedive seen over the two previous sessions over tariff concerns. After plummeting nearly $10 a barrel last Thursday and Friday, West Texas Intermediate crude for May delivery dropped $1.29 or 2.1 percent to $60.70 a barrel.