FX.co ★ Hong Kong Shares Expected To Open To The Upside On Tuesday

The stock market in Hong Kong bounced back on Monday after ending a two-day winning streak. The Hang Seng Index settled just above 16,510 points, with a positive outlook for further gains on Tuesday. This resurgence comes on the heels of global market optimism, as investors seek out bargain buys, particularly among tech stocks hit hardest last week. This trend was echoed in both European and U.S markets, suggesting Asian markets may also follow suit.

The Hang Seng ended Monday with significant gains, led by advances from the technology and property sectors. Key players like Alibaba Group, ANTA Sports and China Life Insurance saw gains of 2.62%, 2.15% and 4.22%, respectively. Conversely, CNOOC saw a drop of 2.47%.

Wall Street reflect similar positivity, with major averages opening higher on Monday and remaining bullish throughout the day. The Dow rallied 0.67% to close at 38,239.98 points, the NASDAQ jumped 1.11% to close at 15,451.31 and the S&P 500 gained 0.87% to finish at 5,010.60.

Tensions in the Middle East have begun to ease, bringing assurance to investors worldwide. As a result, investors began to snap up undervalued stocks, anticipating the release of various U.S. economic data, including new home sales, orders for durable goods, and personal income and expenditure figures.

Asymmetrically, oil prices dipped due to concerns about the future global oil demand, exacerbated by recent data showing a surge in U.S. crude inventories. West Texas Intermediate Crude futures for May fell by $0.29, or 0.34%, settling at $82.85 a barrel.

Lastly, today, Hong Kong is set to release March figures for consumer prices; the figures for February showed inflation was up 0.4% on the month and 2.1% annually.