Hong Kong Shares May See Additional Support On Monday

(RTTNews) - The Hong Kong stock market has alternated between positive and negative finishes through the last four trading days since the end of 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 beneath the 25,670-point plateau and it's expected to extend its gains on Monday.

The global forecast for the Asian markets is cautiously optimistic on an improved outlook for interest rates, although erratic tensions in the Middle East may limit the upside. The European and U.S. markets were up and the Asian bourses are expected to follow that lead.

The Hang Seng finished modestly higher on Friday as gains from the technology and resource stocks were capped by weakness from the financial and property sectors.

For the day, the index gained 137.75 points or 0.54 percent to finish at 25,668.03 after trading between 25,393.13 and 25,669.52.

The lead from Wall Street is positive as the major averages shook off early volatility before settling solidly higher for the balance of the day.

The Dow added 151.83 points or 0.28 percent to finish at 54,036.93, while the NASDAQ jumped 342.26 points or 1.30 percent to end at 26,690.62 and the S&P 500 gained 47.68 points or 0.62 percent to close at 7,757.64.

For the week, the NASDAQ spiked 5.2 percent, the S&P 500 jumped 3.6 percent and the Dow rose 3 percent.

The strength on Wall Street came amid easing concerns about the outlook for interest rates after the Labor Department unexpectedly reported a modest decrease in U.S. employment in July.

While the report pointed to some weakness in the labor market, the data is also seen as decreasing the chances of the Federal Reserve raising interest rates next month.

Crude oil prices advanced on Friday amid lingering uncertainty in the Middle East following attacks by the Iran-aligned Houthis on a military camp in Yemen and in Saudi Arabia. West Texas Intermediate crude for September delivery was up $0.81 or 1.1 percent at $78.10 a barrel.