HONG KONG: The Hong Kong stock market has moved lower in consecutive trading days, retreating more than 210 points or 1 percent along the way. The Hang Seng Index now rests just above the 22,885-point plateau, although the market may find traction on Monday. The global forecast for the Asian markets suggests mild upside, thanks to bargain hunting and a spike in the price of crude oil. The European and U.S. markets were up and the Asian markets are expected to follow suit. The Hang Seng finished modestly lower on Friday following losses from the financials, insurance companies and oil stocks. For the day, the index retreated 164.05 points or 0.71 percent to finish at 22,885.91 after trading between 22,858.25 and 22,987.68.
Among the actives, Belle International Holdings tumbled 2.48 percent, while CNOOC dropped 2.00 percent, China Life skidded 1.38 percent, Industrial and Commercial Bank of China lost 1.46 percent, Li & Fung shed 1.16 percent, Lenovo Group fell 0.97 percent, Ping An dipped 0.37 percent, Kunlun Energy gained 0.33 percent, AIA Group slipped 0.21 percent, China Petroleum and Chemical (Sinopec) eased 0.16 percent and HSBC slid 0.13 percent. The lead from Wall Street is cautiously optimistic as the market moved broadly higher on Friday before pulling back going into the close. The Dow added 94.85 points or 0.5 percent to 19,827.25, while the NASDAQ rose 15.25 points or 0.3 percent to 5,555.33 and the S&P was up 7.62 points or 0.3 percent to 2,271.31. For the week, the Dow and the NASDAQ both fell 0.3 percent, while the S&P lost 0.1 percent.
Bargain hunting led to the initial strength, although traders were focused on President Donald Trump’s inaugural address after he was officially sworn in as the 45th president. Trump remained light on policy details in his remarks but pledged to lead an administration that puts America first. Crude oil futures rallied Friday for a small weekly gain. February WTI oil gained $1.05 or 2 percent to settle at $52.42/bbl. Crude oil was up 0.1 percent for the week. Closer to home, Hong Kong will release December figures for consumer prices later today; in November, inflation was up 1.2 percent on year.
