The stock market in Hong Kong is trading in negative territory on Wednesday morning, dragged down by the weakness on Wall Street, where the major indices ended lower for the second consecutive day as traders expressed some anxiety about the upcoming earning season and stocks' ability to sustain the recent upward move in light of expectations of weak quarterly results.

On Tuesday, the Dow closed down 186.29 points or 2.3% at 7,790, while the Nasdaq closed down 45.10 points or 2.8% at 1,562 and the S&P 500 closed down 19.93 points or 2.4% at 816.

In Asian trading, crude oil is currently down $0.98 at $48.17 a barrel in electronic trading. Light sweet crude for May delivery closed down $1.90 at $49.15 a barrel on the New York Mercantile Exchange on Tuesday amid demand concerns on signs of a deepening global economic downturn. Traders now look forward to the weekly inventory report from the U.S. Energy Information Administration or EIA due out later in the day.

The benchmark Hang Seng Index opened weaker at 14,716, compared to its previous close of 14,929, and is presently trading at 14,383, down 502.33 points, or 3.36%.

All the 42 components of the index, except two, are trading in negative territory.

Bank stocks are the major losers. HSBC Holdings is losing 5.08%, Hang Seng Bank is down 2.45%, Bank of Communications is falling 5.74%, Bank of China is decreasing 3.30% and Bank of East Asia is down 2.23%. Other banks are also trading in negative territory.

Insurance stocks are trading weak. Ping An is down 4.32% and China Life is losing 2.56%.

Among property stocks, Henderson Land is down 4.56%, Wharf Holdings is slipping 1.20%, SHK Properties is falling 2.94%, New World Development is declining 4.22% and Sino Land is losing 4.96%. Other property stocks such as Hang Lung Property and Sinopec Corp. are also trading lower on profit taking.

Resource stocks are trading lower. Aluminum Corporation of China, or CHALCO, is losing 5.09%, CNOOC is falling 3.65% and PetroChina is down 4.85%.

China-related stocks are also trading weak. China Resources is down 2.66%, China Mercantile Holdings is losing 3.45% and China Overseas is falling 3.42%.

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