Asian Economic News
Firm Open Expected For Hong Kong Stocks
11/2/2009 8:29 PM ET
(RTTNews) -
The Hong Kong stock market headed right back to the downside again on Monday, one session after it had ended the three-day losing streak in which it had plunged more than 1,300 points or 6 percent along the way. The Hang Seng is the line at the 21,620-point plateau, and now investors are looking forward to a modest rebound when the market kicks off trade on Tuesday.
The global forecast for the Asian markets is modestly positive, thanks to a recovery in the price of commodities. Financials and steel stocks also are expected to provide support. The European and U.S. markets finished firmly in positive territory, and the Asian markets are tipped to follow that lead.
The Hang Seng finished modestly lower on Monday, thanks to losses among the financials, properties and airlines.
For the day, the index declined 132.68 points or 0.61 percent to finish at 21,620.19 after trading between 21,130.90 and 21,632.90 on turnover of 65.12 billion Hong Kong dollars.
Among the decliners, HSBC Holdings shed 0.97 percent, while Sun Hung Kai Properties lost 1.42 percent, Cheung Kong declined 1.2 percent, Hutchison Whampoa fell 1.26 percent, China Overseas Land & Investment eased 0.47 percent, Air China lost 0.23 percent, China Eastern Airlines dropped 1.86 percent, China Southern Airlines shed 1.74 percent and Cathay Pacific Airways was down 1.57 percent.
Finishing higher, Agile Property Holdings added 1.57 percent and SOHO China gained 1.65 percent.
The lead from Wall Street is fairly optimistic as stocks were able to eke out solid gains on Monday after reaction to a number of economic reports and some Fed comments on the financial sector prompted some volatility. The major averages all finished in positive territory, recovering some of last week's losses.
While the markets saw early strength, stocks gave back some ground after Jon Greenlee, associate director of the Federal Reserve's division of banking supervision and regulation, revealed concerns over the state of the financial system. Greenlee said the U.S. banking system is "far from robust," sparking a pullback in the financial sector.
Separately, the Federal Reserve Governor Daniel Tarullo remarked that even though the economy has begun to show signs of life, the outlook on the magnitude of the recovery should be cautiously optimistic.
The day's initial buying interest came after the Institute for Supply Management released its report on manufacturing activity in the month of October, showing that activity expanded for the third consecutive month amid a jump in production and employment.
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