Hong Kong Shares May Bounce Higher Again On Wednesday

(RTTNews) - The Hong Kong stock market on Tuesday ended the seven-day winning streak in which it had advanced almost 1,050 points or 4.2 percent. The Hang Seng Index now sits just above the 25,850-point plateau although it figures to see renewed support on Wednesday.

The global forecast for the Asian markets is upbeat on falling crude oil prices and optimism for an end to hostilities in the Middle East. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.

The Hang Seng finished modestly lower on Tuesday following losses among the financial shares, technology stocks and energy companies. For the day, the index sank 156.48 points or 0.60 percent to finish at 25,852.92 after trading between 25,768.04 and 26,187.57.

The lead from Wall Street is strong as the major averages opened solidly higher and continued to accelerate throughout the day, ending at fresh record closing highs.

The Dow rallied 907.47 points or 1.71 percent to finish at 54,085.88, while the NASDAQ soared 671.10 points or 2.59 percent to end at 26,584.99 and the S&P 500 jumped 136.02 points or 1.79 percent to close at 7,736.52.

The continued strength on Wall Street comes amid an extended nosedive by the price of crude oil, with U.S. crude oil futures plummeting after Treasury Secretary Scott Bessent claimed the U.S. and Iran could reach a deal to reopen the Strait of Hormuz within the next couple days.

Later, Qatar confirmed that mediatory efforts to secure U.S.-Iran deal are progressing well. West Texas Intermediate crude for September delivery was down $4.66 or 5.80 percent at $75.68 per barrel.

Tech stocks have led the rally amid a positive reaction to earnings news from enterprise software giant Palantir (PLTR); shares of the company surged more than 25 percent it reported better than expected second quarter results and raised its full-year guidance.

In economic news, the Commerce Department said the U.S. trade deficit narrowed roughly in line with estimates in June. The trade deficit shrank to $73.3 billion in June from $77.6 billion in May. Economists had expected the trade deficit to decrease to $73.0 billion.