HK stocks flirt with 10-year high

05-Oct-2017 Intellasia | Marketwatch | 6:00 AM Print This Post

Stocks in Asia-Pacific were largely higher in early action, building on fresh records for US indexes overnight, with Hong Kong flirting with 10-year highs Wednesday.

Hong Kong’s Hang Seng Index HSI, +0.66 percent jumped 1 percent at the open after logging a 2.2 percent gain on Tuesday — its best day in more than a year. If the Hang Seng finishes up more than 0.9 percent, it would notch its highest close in a decade.

The Hang Seng has been one of the world’s best-performing stock indexes this year, rising 28 percent through Tuesday, amid big gains in Chinese property developers and index heavyweight 0700, +0.81 percent The internet giant rose another 0.8 percent in early action, hitting fresh record highs. It has surged 85 percent in 2017.

Hong Kong markets will be closed Thursday, while there is no trading at all this week in China and South Korea. Taiwan is also shut for a holiday on Wednesday.

Meanwhile, Japan’s Nikkei Stock Average NIK, +0.06 percent added 0.2 percent despite an overnight rebound in the yen, which was extended in Asian trading. The yen was recently at JPY 112.60 versus the dollar, compared with JPY 112.85 in late New York action Tuesday and JPY 113.15 when Japan stock trading concluded Tuesday.

Australian equities bucked the regional trend with the S&P/ASX 200 XJO, -0.86 percent down 0.7 percent. Equities Down Under have steadily lagged behind others this year — both regionally and elsewhere in the world — despite strong economic data of late and metals prices that have been largely been solid in 2017.

“The selling pressure is harder to explain in light of a general ‘risk on’ flavor,” said Michael McCarthy, chief market strategist at CMC Markets.

Some of Australia’s big banks, miners and oil companies saw their shares fall 1 percent or more in morning trading.

The benchmark index is just above 5,650, a technical level a number of analysts have been watching. Falling through the level, which has proven repeatedly this year to be a point of market support, could lead to bigger declines, they have said.

Oil was another weak spot in the market Wednesday as overnight declines, following some downbeat US inventory data from an industry group, were extended in Asian trading.

Futures for the Brent global crude-oil benchmark LCOZ7, -0.37 percent were recently down 0.6 percent, while US futures CLX7, -0.54 percent slid 0.8 percent to $50 a barrel.


Category: Hong Kong

Print This Post