FX.co ★ Hong Kong Stock Market Tipped To Open In The Green

The Hong Kong stock market experienced a downturn on Monday, ending a two-day winning streak during which it had soared over 800 points or 4.5 percent. The Hang Seng Index currently hovers just above the 18,000-point mark, though prospects for a rebound on Tuesday are high.

The global economic outlook appears favorable for Asian markets, driven by optimism surrounding interest rates. Despite declines in European markets, U.S. markets experienced gains, a trend that Asian markets are likely to emulate.

On Monday, the Hang Seng saw a significant drop, with declines across financial, property, and technology sectors. The index fell 277.44 points or 1.52 percent, closing at 18,015.94 after fluctuating between 17,946.49 and 18,243.39. Among the notable decliners were:

- **Alibaba Group:** -2.23%

- **Alibaba Health Information Technology:** -2.42%

- **ANTA Sports:** -2.43%

- **China Life Insurance:** -2.13%

- **China Mengniu Dairy:** -1.63%

- **China Resources Land:** -2.70%

- **CITIC:** -2.39%

- **CNOOC:** -1.53%

- **Country Garden:** -1.76%

- **CSPC Pharmaceutical:** -1.94%

- **Galaxy Entertainment:** -1.99%

- **Hang Lung Properties:** -1.57%

- **Henderson Land:** -2.14%

- **Hong Kong & China Gas:** -1.68%

- **Industrial and Commercial Bank of China:** -0.67%

- **JD.com:** -4.73%

- **Lenovo and Haier Smart Home:** -2.32% each

- **Li Ning:** -4.93%

- **Meituan:** -2.22%

- **New World Development:** -3.01%

- **Xiaomi Corporation:** -2.26%

- **WuXi Biologics:** -3.32%

Techtronic Industries was an exception, adding 0.63%.

Wall Street's performance provided a positive lead, as major averages opened higher on Monday, maintaining gains throughout the session to reach new record highs despite some volatility. The Dow Jones Industrial Average rose by 210.82 points or 0.53 percent to close at 40,211.72. The NASDAQ increased by 74.12 points or 0.40 percent to finish at 18,472.57, while the S&P 500 climbed 15.87 points or 0.28 percent to end at 5,631.22.

Support on Wall Street was largely attributed to comments from Federal Reserve Chair Jerome Powell, indicating the central bank's willingness to cut interest rates even before inflation reaches 2 percent.

Economically, a report from the Federal Reserve Bank of New York indicated a slight acceleration in the contraction of regional manufacturing activity in July.

Crude oil futures also saw a decline on Monday, influenced by political instability following an assassination attempt on former President Donald Trump and weak economic data from China. West Texas Intermediate crude oil futures for August decreased by $0.30, settling at $81.91 per barrel.