The Hong Kong stock market has finished lower in four consecutive trading days, plummeting more than 1,500 points or 6 percent in that span. The Hang Seng Index now rests just above the 25,750-point plateau and it's expected to finally find its footing on Tuesday.
The global forecast for the Asian markets is cautiously optimistic, with bargain hunting expected after heavy selling in recent sessions. The European markets were down and the U.S. bourse rebounded to end higher - and the Asian markets figure to follow the latter lead.
The Hang Seng finished sharply lower on Monday following losses from the financials, properties and insurance companies.
For the day, the index tumbled 311.38 points or 1.19 percent to finish at 25,752.38 after trading between 25,570.89 and 25,845.34.
Among the actives, China Resources Land plummeted 3.93 percent, while CSPC Pharmaceutical plunged 3.48 percent, Hang Lung Properties tumbled 3.44 percent, New World Development skidded 2.43 percent, AIA Group dropped 1.82 percent, China Life Insurance retreated 1.58 percent, China Mengniu Dairy contracted 1.47 percent, WH Group declined 1.36 percent, BOC Hong Kong shed 1.35 percent, Galaxy Entertainment advanced 1.33 percent, Ping An Insurance lost 1.20 percent, Industrial and Commercial Bank of China fell 0.91 percent, China Mobile slid 0.77 percent, Hong Kong & China Gas dipped 0.38 percent, CNOOC added 0.31 percent and China Petroleum and Chemical (Sinopec) eased 0.16 percent.
The lead from Wall Street suggests mild upside as stocks shrugged off a sharply lower open on Monday, rebounding finish in the green.
The Dow added 34.31 points or 0.14 percent to 24,423.26, while the NASDAQ added 51.27 points or 0.74 percent to 7,020.52 and the S&P was up 4.64 points or 0.18 percent to 2,637.72.
The turnaround on Wall Street came as traders went bargain hunting after the early weakness extended the sell-off seen last week. The Dow and the S&P 500 rebounded after hitting their lowest intraday levels in months.
The early weakness reflected lingering concerns about the global economic outlook along with skepticism about the potential for a long-term trade deal between the U.S. and China.
Traders may also be reluctant to make significant moves ahead of next week's Federal Reserve monetary policy meeting. The Fed is expected to raise interest rates by another quarter point, and traders will scrutinize the accompanying statement for clues about future rate hikes.
Also, substantial weakness remained visible among energy stocks, which moved lower along with the price of crude oil. Crude for January delivery tumbled $1.61 to $51 a barrel.
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