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Hong Kong Stocks May Open Under Pressure

The Hong Kong stock market on Wednesday ended the three-day winning streak in which it had gathered more than 320 points or 1.2 percent. The Hang Seng Index now rests just above the 27,750-point plateau although it may take further damage on Thursday.

The global forecast for the Asian markets suggests mild consolidation due mainly to geopolitical concerns regarding North Korea, although a bump in crude oil prices offers mild support. The European and U.S. markets were down and the Asian bourses figure to open in similar fashion.

The Hang Seng finished modestly lower on Wednesday as losses from the insurance and oil companies were mitigated by support from the property sector.

For the day, the index sank 97.82 points or 0.35 percent to finish at 27,757.09 after trading between 27,602.66 and 27,876.12.

Among the actives, Henderson Land spiked 2.58 percent, while China Mengniu Dairy advanced 2.24 percent, New World Development climbed 1.91 percent, Ping An Insurance dropped 1.51 percent, Sun Hung Kai Properties perked 1.47 percent, China Life tumbled 1.20 percent, Cathay Pacific Airways shed 0.83 percent, Industrial and Commercial Bank of China lost 0.53 percent, Tencent Holdings jumped 0.49 percent, China Petroleum and Chemical (Sinopec) and CNOOC both fell 0.34 percent, China Mobile added 0.24 percent and Lenovo Group was unchanged.

The lead from Wall Street is negative as stocks moved lower on Wednesday, although the downside was limited.

The Dow dipped 36.64 points or 0.2 percent to 22,048.70, while the NASDAQ fell 18.13 points or 0.3 percent to 6,352.33 and the S&P eased 0.90 points or 0.1 percent to 2,474.02.

The weakness reflected geopolitical concerns amid a continued increase in tensions between the U.S. and North Korea. The lower close followed remarks by President Donald Trump warning North Korea against further threats.

In economic news, the Labor Department said labor productivity increased more than expected in the second quarter, as did unit labor costs.


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