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Hong Kong bonds set for hilly afternoon event as mood swings to caution

Hong Kong markets kicked off a week on a downbeat note, pressured by a slip in certainty as investors reassessed a tellurian opinion in a arise of final week’s executive bank decisions.

The Hang Seng Index fell 0.67 per cent in morning trade or 159.78 points during 23,526.70, and a Hang Seng China Enterprises Index fell 0.68 per cent or 67.02 points to 9,728.99.

Haitong International Securities sales merchant Andrew Sullivan pronounced in a note that a markets saw a “weak open” as investors waited to see if southbound investment flows will resume. However, Sullivan expects mainland investors will take a risk-off proceed in a days heading adult to China’s Golden Week, or annual seven-day inhabitant holiday.

Nomura analysts also sounded downbeat, observant that holds this week will take their cues from developments in a US.

“We do not design postulated gains from here, and in fact see a outcomes as rather negative,” Nomura pronounced in a note on Monday morning. “Thus, we sojourn tactically neutral on Asian equities.”

Focus for markets will now tumble on US politics and a initial US presidential plead Tuesday morning Hong Kong time, analysts said.

“Expect counsel forward of a initial US presidential claimant debate,” Sullivan said.

IG marketplace researcher Angus Nicholson in Melbourne pronounced in a note that a “good” plead opening by Republican hopeful Donald Trump could assistance convene protected breakwater resources such as Japanese bonds, currencies, bullion prices, and German bunds, while giving a hit to riskier resources such as high-yield bonds, US equities, and rising marketplace bonds.

Morning trade saw spark holds as a largest gainers, rising 2 per cent, while oil and gas holds fell 1.17 per cent overall. This follows resilient oil prices on news of low wanton oil inventories, with Brent futures for Nov rising to US$46.27 a barrel. Members of Opec countries are scheduled to reason a assembly Wednesday to plead options for cuts or freezes to oil output.

“We will not come out of a assembly empty-handed,” Algeria’s appetite apportion pronounced on Sunday.

Stocks with a biggest turnover enclosed Tencent, that stumbled 1.10 per cent to HK$215.80, while HSBC Holdings tacked on 0.17 per cent to HK$58.15.

State-owned Postal Savings Bank of China will start trade Wednesday after a initial open charity lifted US$7.4 billion final week.

All 3 vital US indexes sealed down on Friday, giving behind some gains from a seductiveness rate announcement. The Dow Jones Industrial Average finished 0.71 per cent reduce during 18,261.45 and a SP 500 fell 0.57 per cent to 2,164.69. Meanwhile, a Nasdaq Composite was down 0.6 per cent during 5,305.75 after a record high Thursday.

The Shanghai Composite Index fell 0.71 per cent or 21.56 points to 3,012.34 while a CSI 300 forsaken 0.77 per cent or 25.14 points to 3,261.91. The Shenzhen Composite Index mislaid 0.65 per cent or 12.97 points to 1995.15 while a Nasdaq-style ChiNext strew 0.08 per cent or 1.64 points to 2,154.87.

The US markets finished aloft on Friday, capping 3 uninterrupted trade sessions of gains after a Federal Reserve done transparent the financial military decisions, while indicating a intensity rate travel in December.

Elsewhere in Asian trade on Monday morning, Tokyo’s Nikkei 225 mislaid 0.84 per cent to 16,612.57. Seoul’s Kospi was down 0.26 per cent while Sydney’s All Ordinaries forsaken 0.21 per cent.