The Hong Kong stock market on Wednesday snapped the three-day winning streak in which it had surged almost 700 points or 3.4 percent. The Hang Seng Index now sits just above the 20,530-point plateau and its got a positive lead again for Thursdays trade.
The global forecast for the Asian markets is upbeat following a clear result in the U.S. presidential election. The European markets were down and the U.S. bourses were up and the Asian markets figure to follow the latter lead.
The Hang Seng finished sharply lower as investors locked in gains across the board, but especially in the technology and property sectors.
For the day, the index plunged 468.59 points or 2.23 percent to finish at 20,538.38 after trading between 20,361.92 and 20,859.66.
Among the actives, Alibaba Group plummeted 4.07 percent, while Alibaba Health Info was down 0.24 percent, ANTA Sports and Li Ning both sank 2.11 percent, China Life Insurance plunged 3.98 percent, China Mengniu Dairy declined 2.28 percent, China Resources Land skidded 2.21 percent, CITIC tanked 3.41 percent, CNOOC retreated 2.50 percent, CSPC Pharmaceutical tumbled 2.56 percent, Galaxy Entertainment surrendered 2.95 percent, Haier Smart Home tanked 4.13 percent, Hang Lung Properties shed 1.72 percent, Henderson Land eased 0.19 percent, Hong Kong & China Gas lost 1.47 percent, Industrial and Commercial Bank of China slumped 2.26 percent, JD.com plunged 4.16 percent, Lenovo plummeted 4.58 percent, Li Auto stumbled 2.69 percent, Meituan retreated 2.32 percent, New World Development tumbled 2.70 percent, Nongfu Spring fell 1.35 percent, Techtronic Industries surrendered 3.34 percent, Xiaomi Corporation dropped 2.13 percent and WuXi Biologics slid 0.69 percent.
The lead from Wall Street is broadly positive as the major averages opened higher and only accelerated as the day progressed, ending at session highs.
The Dow surged 1,508.05 points or 3.57 percent to finish at 43,729.93, while the NASDAQ rallied 544.29 points or 2.95 percent to close at 18,983.46 and the S&P 500 spiked 146.28 points or 2.53 percent to end at 5,929.04.
The extended rally on Wall Street came after former President Trump was declared the winner in the presidential election versus Vice President Kamala Harris.
The decisive victory helped avoid the uncertainty that would be created by a prolonged vote counting process and potential legal challenges.
Traders will turn their attention to the Federal Reserve, which is due to announce its latest monetary policy decision later today. The Fed is widely expected to lower interest rates by 25 basis points, but the accompanying statement could the impact the outlook for future rate cuts.
Oil prices drifted lower on Wednesday after data showed crude inventories in the U.S. rose more than expected last week, while a stronger dollar also weighed. West Texas Intermediate Crude oil futures for December closed down $0.30 or 0.42 percent at $71.69 a barrel.