China shares fall in sharp reversal, Hang Seng slips
Apple suppliers hit by disappointed quarterly revenue results
Hong Kong shares slipped for a second-straight day on Thursday, falling further away from chart resistance that had stymied gains for about a week, with Apple’s suppliers hit after the tech giant reported underwhelming quarterly revenue.
China shares ended lower on Thursday after a choppy session as investors took profit on recent outperformers, triggering a sharp intra-day reversal that left benchmark indexes vulnerable to further losses in the near term.
Weakness in mainland markets dragged on Hong Kong, with the Hang Seng Index down 0.2 per cent to 23,598.9, pulling further away from chart resistance at about 23,708, the high on May 31, 2011.
The China Enterprises Index of the top Chinese listings in Hong Kong fell 0.6 per cent, with only four components posting gains on the day. Bourse turnover slipped slightly from Wednesday, but stayed above $10 billion.
In the mainland, the CSI300 of the top Shanghai and Shenzhen listings ended down 1 per cent, while the Shanghai Composite Index finished down 0.8 per cent in bourse volume that spiked to its highest since Jan. 15.
“Technically speaking, this reversal doesn’t look good for the A-share market...but it could spark some buying on dips,” said Wang Ao-chao, UOB Kay Hian’s Shanghai-based head of research.