HONG KONG: Hong Kong shares shrugged off a stronger start, edging down in low trading volume on Wednesday morning as investors stayed away amid continued wariness over the unfolding Japanese nuclear crisis.
The benchmark Hang Seng Index was down 0.4 percent at 22,579.2 by the midday trading break, a level at which analysts expect stocks to consolidate today after tumbling 2.9 percent on Tuesday.
"There is pessimism, but no more panic today," said Wing Fung Financial Group head of research Mark To.
Ben Kwong, chief operating officer at KGI Asia, said that while the Nikkei rebound would support Hong Kong stocks, strong yen pressure could unwind carrying trades and lead to outflows in the short term.
Overseas events weighed on the Hong Kong market ahead of annual earnings announcements today.
China Mobile announced 2010 its full-year earnings during the midday break, reporting a 3 percent net profit increase, in line with expectations.
Hong Kong and China Gas Co Ltd rose 2.5 percent after the company announced strong 2010 earnings late on Tuesday. Its 2010 net profit was up 6 percent over 2009.
SHANGHAI UP ON NIKKEI REBOUND
The Shanghai Composite Index was up 0.4 percent at midday, following rising Asian stocks and powered by gains in energy counters and materials.
"The market is up because regional stocks, including in Japan, are recovering from yesterday's losses," said Qian Qimin, an analyst at Shenyin and Wanguo Securities in Shanghai.
China's largest coal company China Shenhua Energy Co Ltd rose 3 percent and Aluminum Corp of China Ltd jumped 5 percent in morning trade on expectations of reconstruction demand in Japan.
Nuclear power leader Dongfang Electric Corp Ltd halted its two-day slide, gaining 1 percent in the morning after losing 10 percent so far this week.
Renewable energy stocks saw some profit-taking, with Xinjiang Goldwind Science and Technology Co Ltd , the world's fifth-largest wind turbine maker, down 0.9 percent after rising 8.4 percent Tuesday.
"Nothing else is really moving the market. Tightening expectations haven't changed much today," said Qian.
China inflation expectations receded among households in the first quarter, but more bankers believe monetary policy will be tightened in the second quarter of this year, a survey released by the Chinese central bank on Wednesday showed.
China's insurers gained after Moody's said it saw a stable outlook for the sector. The financial sub-index was up 0.2 percent at midday, with large insurer Ping An Insurance (Group) Co of China Ltd up 0.9 percent.
Comments
Comments are closed.