Proft Taking Expected For Hong Kong Shares

(RTTNews) - The Hong Kong stock market rebounded on Wednesday, one day after snapping the three-day winning streak in which it had jumped more than 800 points or 3.6 percent. The Hang Seng Index now sits just beneath the 24,200-point plateau although it's likely to open under pressure again on Thursday.

The global forecast for the Asian markets is negative thanks to renewed hostilities in the Middle East. The European markets were down and the U.S. bourses were mixed and the Asian markets figure to split the difference.

The Hang Seng finished sharply higher on Wednesday with support from all sectors, especially the financial shares and technology stocks.

For the day, the index surged 702.57 points or 2.99 percent to finish at 24,199.46 after trading between 23,541.22 and 24,310.92.

The lead from Wall Street is weak as the major averages spent most of the day in the red before finally ending the session mixed.

The Dow tumbled 576.76 points or 1.09 percent to finish at 52,348.39, while the NASDAQ rose 51.96 points or 0.20 percent to close at 25,870.65 and the S&P 500 slipped 21.14 points or 0.28 percent to end at 7,482.71.

The early weakness on Wall Street came amid concerns about a re-escalation of the conflict in the Middle East after President Donald Trump declared the U.S.-Iran ceasefire "over."

Crude oil prices skyrocketed on Wednesday amid renewed Middle East tensions after the U.S. and Iran exchanged fresh strikes. West Texas Intermediate crude for August delivery was up $3.16 or 4.49 percent at $73.60 per barrel.

However, stocks regained ground over the course of the session as crude oil prices pullback off their highs of the session.

Housing stocks moved sharply lower on concerns about the outlook for interest rates, dragging the Philadelphia Housing Sector Index down by 3.8 percent. Substantial weakness was also visible among gold stocks, which tumbled along with the price of the precious metal.