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Hong Kong stocks hover around 3-month lows as earnings jitters weigh on sentiment
Investors are waiting for the official June data on Chinese companies’ industrial profits due on Saturday. The data will shed some light on how second-quarter earnings for Chinese listed companies could fare, given its high correlation with macro data.
China will need to ramp up its policy support for the property market, which is still in a downturn despite a broad rescue package unveiled in May, according to Nomura Holdings. Key indicators of the industry will remain in the negative territory in the second half, home prices are still falling and pay cuts in the financial industry could become the new headwind that will derail a recovery in home sales, it said.
Other major Asian markets mostly headed south. Japan’s Nikkei 225 slipped 0.2 per cent and Australia’s S&P/ASX 200 dropped 0.1 per cent, while South Korea’s Kospi was little changed.
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