Hong Kong stocks fluctuate as casino, property sectors weigh; Asian markets advance
The Hang Seng Index added 0.1 per cent to 17,098.70 at local noon trading break, after losing as much as 0.5 per cent in earlier trading session. The Tech Index declined 0.3 per cent, while the Shanghai Composite Index was little changed.
Tencent jumped 1.2 per cent to HK$374.60 and Alibaba added 0.6 per cent to HK$78.30 before their earnings card later this week. HSBC gained 0.5 per cent to HK$64.25 and Bank of China (HK) climbed 0.4 per cent to HK$22.40, leading gains among local lenders.
Traders are awaiting more economic data this week to gauge whether China’s economy is finding traction. Retail sales are likely to have grown at a faster pace of 2.6 per cent in July, while industrial production growth is expected to slow to 5.2 per cent during the same period, according to the consensus of economists polled by Bloomberg.
Signs of easing from China’s central bank helped lifted the mood. The People’s Bank of China pledged to “create a favourable monetary and financial environment for achieving the full-year economic and social development goals” in its second quarter monetary policy report last Friday.
The central bank is likely to deliver a 25-basis-point cut to the reserve requirement ratio in the third quarter to facilitate increased government bond issuance, and a 10-basis-point policy rate cut in the last quarter to lower funding costs for the real economy, according to Goldman Sachs.
“If policies can maintain the momentum, it will provide more support for subsequent capital inflows and market rebounds,” Kevin Liu, equity strategist and managing director at CICC, said in a note on Sunday. Still, the market is likely to stay volatile as it is still difficult for global funds to flow back substantially to local markets as risk-aversion sentiment remains elevated, he added.
Other major Asian markets gained on Monday. Japan’s Nikkei 225 added 0.6 per cent, South Korea’s Kospi Index rose 1 per cent and Australia’s S&P/ASX 200 Index climbed 0.4 per cent.
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