SINGAPORE: Hong Kong shares inched up in holiday-thinned trade on Monday, reversing early losses, with another batch of underwhelming Chinese economic data capping gains.
At the close of trade, the Hang Seng index was up 53.03 points or 0.31% at 17,422.12. The Hang Seng China Enterprises index rose 0.31% to 6,090.16.
Mainland equity, bond and foreign exchange markets were closed for the mid-autumn festival break and will resume trading on Wednesday. Hong Kong markets trade on Tuesday but will close on Sept. 18.
“The Hang Seng index rebounded near 17,000 points ... (but) it is expected that the overall market will continue to fluctuate (with) volume likely to remain at relatively low levels,” said Kenny Ng, strategist at China Everbright Securities International.
New World Development was the top gainer on the Hang Seng with a 5% jump, while the biggest loser was consumption-sensitive bottled water company Nongfu Spring , which fell 2.6%.
Kuaishou Technology and Meituan were other top gainers, rising 4.59% and 2.9% respectively. J&T Global Express down 6.5% and developer Longfor Group Holdings, down 2.4%, were among top losers.
Property shares were sold as data over the weekend showed China’s new home prices fell 5.3% from a year earlier in August, with supportive measures failing to spur a meaningful recovery.
China industrial output also slowed to a five-month low, increasing market speculation that extra stimulus will be needed to achieve China’s annual growth target.
About 1.13 billion Hang Seng index shares were traded, less than half the market’s 30-day moving average.
Interbank rates in Hong Kong slid to their lowest in years, partly in anticipation of falling US interest rates but also reflecting high cash balances and little confidence to invest in Hong Kong equities.
Around Asia, MSCI’s Asia ex-Japan stock index gained 0.5%, with trading activity thin due to regional holidays, while Japan was closed for a holiday.
Comments
Comments are closed for this article.