RTTNews - The Hong Kong stock market has ended lower now in consecutive sessions, giving away more than 500 points or 2.7 percent along the way. The Hang Seng Index slid through support at 17,300, although investors are looking for the market to regain that level when it opens for business on Tuesday.
The global forecast for the Asian markets is optimistic, with many of the regional bourses poised for a recovery after being mired in lengthy and costly losing streaks. Financials are tipped to be a source of strength, although the gains could be slightly limited by continued weakness from the oil companies. The European and U.S. markets ended sharply higher as earnings season continues, and the Asian markets are also predicted to put on significant gains.
The Hang Seng finished sharply lower on Monday, thanks to heavy losses among the financials, properties and energy stocks. For the day, the index dropped 453.79 points or 2.56 percent to close at 17,254.63 after moving between 17,612.45 and 17,185.96 on turnover of 52.55 billion Hong Kong dollars.
Among the decliners, HSBC shed 1.92 percent, while China Construction Bank lost 3.04 percent, China Mobile fell 2.57 percent, Hang Seng Bank eased 1.42 percent, ICBC gave up 2.77 percent, Bank of China lost 2.84 percent, Cheung Kong shed 2.52 percent, SHK Properties fell 1.98 percent, CNOOC was down 2.76 percent, PetroChina dropped 3.53percent and Sinopec eased 1.95 percent.
The lead from Wall Street is broadly positive as stocks rallied amid some positive analyst comments on the financial sector after showing a lack of direction in early trading on Monday. The major averages finished in positive territory by substantial margins, staging their strongest performance of the month.
Financial stocks led the way higher on the heels of positive comments from influential analyst Meredith Whitney, who raised her rating on Goldman Sachs (GS) to Buy from Neutral. Whitney also said Bank of America (BAC) could provide value for investors.
On the earnings front, railroad operator CSX Corp. (CSX) is reported second quarter earnings after the close of trading, reporting earnings of $0.78 per share compared to $0.93 per share last year. Excluding the impact of discontinued operations, the company earned $0.72 per share.
Meanwhile, Novellus Systems (NVLS) reported an adjusted second-quarter loss of $39.3 million or $0.41 per share versus net income of $6.2 million or $0.06 per share in the year ago quarter. Wall Street analysts expected the company to report a loss of $0.38 per share for the quarter.
The major averages saw some further upside going into the close, ending the session at their best levels of the day. The Dow closed up by 185.16 points or 2.3 percent at 8,331.68, the NASDAQ moved up by 37.18 points or 2.1 percent to 1,793.21 and the S&P 500 rose by 21.92 points or 2.5 percent to 901.05.
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