(RTTNews) - The Hong Kong stock market on Monday ended the two-day winning streak in which it had surged more than 500 points or 3 percent. The Hang Seng Index now sits just beneath the 16,630-point plateau although it's likely to rebound again on Tuesday.
The global forecast for the Asian markets is cautiously optimistic on hopes for an interest rate cut. The European markets were mixed and the U.S. bourses were modestly higher and the Asian markets are expected to split the difference.
The Hang Seng finished sharply lower on Monday following losses from the financial shares, property stocks and technology companies. For the day, the index stumbled 162.96 points or 0.97 percent to finish at 16,629.23 after trading between 16,572.88 and 16,713.41.
Among the actives, Alibaba Group gained 0.63 percent, while Alibaba Health Info tumbled 2.28 percent, ANTA Sports declined 2.07 percent, China Life Insurance fell 0.51 percent, China Mengniu Dairy plunged 3.46 percent, China Resources Land tanked 2.85 percent, CITIC plummeted 3.52 percent, Country Garden sank 1.00 percent, CSPC Pharmaceutical shed 0.85 percent, ENN Energy added 0.36 percent, Galaxy Entertainment dropped 1.18 percent, Hang Lung Properties surrendered 2.40 percent, Henderson Land and Meituan both retreated 2.12 percent, Hong Kong & China Gas skidded 1.20 percent, Industrial and Commercial Bank of China slipped 0.27 percent, JD.com was down 0.19 percent, Lenovo dipped 0.20 percent, Li Ning stumbled 1.89 percent, New World Development slumped 1.85 percent, Techtronic Industries surged 3.61 percent, Xiaomi Corporation slid 0.50 percent, WuXi Biologics lost 0.68 percent and CNOOC and CK infrastructure both were unchanged. The lead from Wall Street is mostly positive as the major averages opened higher on Monday and largely stayed that way, although the Dow struggled to stay in the green.
The Dow rose 0.86 points or 0.00 percent to finish at 37,306.02, while the NASDAQ advanced 90.89 points or 0.61 percent to close at 14,904.81 and the S&P 500 gained 21.37 points or 0.45 percent to end at 4,740.56.
The major averages have moved higher for seven consecutive weeks due in part to optimism about the outlook for interest rates, with last week's rally coming as the Federal Reserve's latest projections hinted at three rate cuts next year.
However, several Fed officials have subsequently pushed back on investor hopes that rate cuts by the central bank are imminent. Nonetheless, CME Group's FedWatch Tool still suggests there is a good chance the Fed will lower interest rates by a quarter point in March.
In economic news, the National Association of Home Builders released a report showing homebuilder sentiment in the U.S. rebounded in December after falling for four consecutive months.
Oil prices rose sharply on Monday on rising tensions in the Middle Ease due to recent attacks on ships crossing the Red Sea, which have raised supply concerns. West Texas Intermediate Crude oil futures for January ended higher by $1.04 or 1.44 percent at $72.47 a barrel.
Closer to home, Hong Kong will see November data for unemployment later today; in October, the jobless rate was 2.9 percent.
