Oversold Hang Seng Nonetheless Called Lower

(RTTNews) – The Hong Kong stock market has finished lower in six straight sessions, sinking more than 730 points or 2.4 percent along the way. The Hang Seng Index now rests just above the 28,740-point plateau and it’s looking at another negative lead for Thursday’s trade.

The global forecast for the Asian markets is slightly soft ahead of key U.S. inflation data later today. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to split the difference.

The Hang Seng finished slightly lower on Wednesday following losses from the technology stocks, gains from the properties and oil companies and a mixed picture from the casinos.

For the day, the index shed 38.75 points or 0.13 percent to finish at 28,742.63 after trading between 28,687.69 and 28,859.58.

Among the actives, AAC Technologies lost 0.27 percent, while AIA Group declined 0.67 percent, Alibaba Group retreated 1.05 percent, Alibaba Health Info plummeted 2.48 percent, ANTA Sports tanked 1.53 percent, China Mengniu Dairy surged 4.88 percent, China Petroleum and Chemical (Sinopec) climbed 1.71 percent, China Resources Land rose 0.42 percent, CITIC added 0.66 percent, CNOOC soared 2.97 percent, CSPC Pharmaceutical skidded 1.14 percent, Galaxy Entertainment sank 0.55 percent, Hang Lung Properties advanced 1.23 percent, Henderson Land jumped 1.72 percent, Hong Kong & China Gas shed 0.33 percent, Industrial and Commercial Bank of China fell 0.20 percent, Longfor gained 0.55 percent, Meituan tumbled 1.28 percent, New World Development gathered 0.36 percent, Sands China perked 0.30 percent, Sun Hung Kai Properties rallied 1.66 percent, Techtronic Industries dropped 0.37 percent, Xiaomi Corporation plunged 1.59 percent, WuXi Biologics spiked 2.43 percent and China Life Insurance was unchanged.

The lead from Wall Street suggests mild consolidation as stocks opened mixed on Wednesday, bounced back and forth across the unchanged line and eventually ended slightly lower.

The Dow dropped 152.68 points or 0.44 percent to finish at 34,447.14, while the NASDAQ dipped 13.16 points or 0.09 percent to end at 13,911.75 and the S&P 500 eased 7.71 points or 0.18 percent to close at 4,219.55.

The cautious trade on Wall Street reflected concerns over key inflation data that could prompt the Federal Reserve to begin discussions on tapering its asset buying program sooner than expected.

In economic news, the Commerce Department said wholesale inventories rose 0.8 percent on month to $ 698.0 billion in April after seeing a 1.2 percent increase in March.

Crude oil prices edged lower on Wednesday after data showed a jump in U.S. gasoline stockpiles last week. West Intermediate crude oil futures for July ended down $0.09 or 0.1 percent at $69.96 a barrel.