FX.co ★ Losing Streak May Continue For Hong Kong Shares

In the run-up to the Lunar New Year, the Hong Kong stock market saw a decline for three consecutive days, resulting in a loss of over 380 points or approximately 2.5 percent. The Hang Seng Index is currently hovering below the 15,750-point mark, and may continue to deteriorate further this Wednesday.

International predictions suggest a generally negative outlook for Asian markets due to mounting pessimism over interest rate forecasts. With sharp declines in both European and U.S markets, Asian markets are expected to face similar pressures.

On the last trading day preceding the Lunar New Year break, the Hang Seng Index ended slightly lower due to losses in the financial and technology sectors and mixed results from the realty industry. The index sank 131.49 points or 0.83 percent, culminating at 15,746.58.

As for individual companies, Alibaba Group and Techtronic Industries both fell by 1.42 percent, Alibaba Health Info plummeted by 2.79 percent, while ANTA Sports rose 1.58 percent. Other companies such as China Life Insurance, China Mengniu Dairy, and China Resources Land suffered losses, while Hang Lung Properties saw a steep 4.04 percent drop. In contrast, companies such as Galaxy Entertainment and Haier Smart Home saw modest increases.

Wall Street's performance signals a trend of consolidation as major averages saw significant decreases. The Dow, NASDAQ, and the S&P 500 all experienced significant losses.

Following the release of an anticipated Labor Department report indicating a slight increase in U.S consumer prices in January, Wall Street saw a sell-off. The report has dulled optimism about an imminent reduction in interest rates, given that Federal Reserve officials have consistently stated that they require more assurance of inflation slowing down before considering reducing interest rates.

In response to this report, Treasury yields surged, with the ten-year note yield marking a two-month high.

Concerns over supply due to ongoing Middle Eastern tensions have driven oil prices higher, with West Texas Intermediate Crude oil futures for March rising by $0.95 or 1.25 percent to $77.87 a barrel, marking a seventh consistent day of increase.