FX.co ★ Oversold Hang Seng May Find Traction On Wednesday

The Hong Kong stock market has seen a consecutive decline over four consecutive trading days, losing almost 900 points or 5.5 percent. Presently, the Hang Seng Index is just below the level of 16,250 points and expected to attract those looking for bargain buys on Wednesday.

The global forecast for Asian markets anticipates a period of little movement, as market forces weigh the appeal of bargain hunting against concerns around interest rates. Both the European and U.S. markets have exhibited mixed performance, a trend that Asian markets are expected to follow.

On Tuesday, the Hang Seng had a notable decrease, with losses observed across all sectors. This was most prominently seen among property and technology companies. During the trading day, the index saw a sharp fall of 351.49 points or 2.12 percent, finishing at 16,248.97.

Among the most dynamic companies, Alibaba Group saw a decline of 2.77 percent, while Alibaba Health Info dropped by 3.68 percent. Further depreciation was seen in ANTA Sports, China Life Insurance, China Mengniu Dairy and other companies in varying sectors. On the other hand, Galaxy Entertainment fell significantly by 4.91 percent.

Market opening on Wall Street on Tuesday offered little guidance as the major indexes started with mixed results. In terms of intraday performance, the Dow gained 63.86 points or 0.17 percent, while NASDAQ lost 19.77 points or 0.12 percent, and the S&P 500 sank 10.41 points or 0.21 percent.

Market uncertainty is amplified by traders' dilemma of buying stocks at relatively lower levels or being concerned about future interest rates. The yield on the fundamental ten-year note reached its highest intraday level in almost six months following a report by the Federal Reserve indicating an ongoing increase in U.S. industrial production in March.

Adding to the concerns about interest rates, Fed Chair Jerome Powell hinted that rates might remain high for an extended period due to a "lack of progress" in reaching the central bank's inflation target.

As of Tuesday, crude oil prices had also been faintly volatile before dipping slightly. This was in response to a hint from Treasury Secretary Janet Yellen that the U.S. is considering imposing fresh sanctions on Iran following the country's attack on Israel. Consequently, West Texas Intermediate crude for May delivery fell by $0.05 or 0.1 percent to $85.36 a barrel.