FX.co ★ Hong Kong Stock Market Tipped To Open To The Downside

The Hong Kong stock market has experienced a downturn for three consecutive sessions, shedding nearly 650 points or 3.8 percent during this period. The Hang Seng Index now hovers just below the 16,700-point mark, with expectations leaning toward another decline on Tuesday.

The global outlook for Asian markets remains pessimistic due to persistent concerns regarding the U.S. economy. Both European and U.S. markets saw significant drops on Monday, and it is anticipated that Asian markets will follow suit. That said, there is a potential for the selloff to diminish as the trading day progresses, considering the extent of the recent declines.

On Monday, the Hang Seng closed sharply lower, weighed down by losses in technology and financial stocks, while the property sector showed mixed results.

The index dropped by 247.15 points or 1.46 percent, settling at 16,698.36 after fluctuating between 16,441.44 and 16,944.59 throughout the day.

Among notable stocks, Alibaba Group fell by 1.53 percent, while Alibaba Health Information Technology gained 1.26 percent. ANTA Sports was down 0.07 percent, China Life Insurance rose by 0.38 percent, and China Mengniu Dairy surged 3.34 percent. China Resources Land advanced by 0.67 percent, whereas CITIC decreased by 1.40 percent. CNOOC saw a significant decline of 6.37 percent, and Country Garden slipped 0.44 percent. CSPC Pharmaceutical dropped 0.52 percent, but Galaxy Entertainment rallied 2.24 percent. Hang Lung Properties lost 0.18 percent, Henderson Land decreased 0.23 percent, and Hong Kong and China Gas edged up 0.46 percent. Industrial and Commercial Bank of China fell 2.31 percent, JD.com retreated 1.47 percent, Lenovo skidded 1.24 percent, and both Li Ning and ENN Energy tumbled 3.22 percent. Meituan spiked 2.69 percent, New World Development surged 5.34 percent, Techtronic Industries plunged 4.24 percent, Xiaomi Corporation slumped 1.37 percent, and WuXi Biologics dropped 2.63 percent.

Wall Street delivered a grim lead as major indices opened deeply in the red on Monday and remained so throughout the trading day.

The Dow Jones Industrial Average plummeted 1,033.99 points or 2.60 percent to close at 38,703.27. The NASDAQ Composite fell 576.08 points or 3.43 percent, ending at 16,200.08, while the S&P 500 declined 160.23 points or 3.00 percent to finish at 5,186.33.

The continued weakness on Wall Street stemmed from fears that the U.S. economy might enter a recession following last Friday’s underwhelming jobs report.

However, stocks did regain some ground after a report from the Institute for Supply Management indicated positive service sector activity in the U.S. for July.

Oil futures fell on Monday amid concerns about demand outlook due to fears of a possible U.S. economic recession. West Texas Intermediate (WTI) Crude oil futures for September declined by $0.58 or 0.7 percent, closing at $72.94 per barrel.