Market Open:Hong Kong stocks seen higher on easing hopes after disappointing China PMI
Hong Kong stocks may open higher after a two-day National Holiday break on speculation that more easing measures could be in the pipeline to revive growth
Hong Kong stocks may open higher after a two-day National Holiday break on speculation that more easing measures could be in the pipeline to revive growth after an official survey of factory managers in China remained in negative territory for a second consecutive month.
China's official factory purchasing managers' index rose to 49.8 in September from 49.2 in August, the National Bureau of Statistics said on Monday. A figure below 50 denotes contraction.
"Market could get disappointed by the below-50 and below consensus 49.8 reading, but bad news from data side, especially on employment, could be good news for policies," Lu Ting, Bank of America Merrill Lynch China economist, wrote in an emailed note to clients.
Elsewhere, Federal Reserve Chairman Ben Bernanke urged the government to act to support stronger economy growth and Australia's central bank cut interest rates by 25 basis points, with more cuts expected to follow. Spain's unemployment population grew by nearly half a million people in the year to September, government data showed on Tuesday.
Overnight, the Standard & Poor's 500-stock index closed up 1.26 points, or 0.09 per cent, to close at 1,445.75. The Nasdaq Composite added 6.51 points, or 0.21 per cent, to 3,120.04. In London, the FTSE-100 Index lost 11 points, or 0.19 per cent, to end at 5,809.45.
Hot Stocks of the Day:
SINO LAND (0083.HK), K. Wah International Holdings (0173.HK)
Sino Land won two plots through a tender on Friday: Tseung Kwan O Area 66C2 for HK$2.29 billion and a site in Peng Chau for HK$31 million. The Tseung Kwan O plot purchase was a 60-40 joint bid with K Wah International.
TSE SUI LUEN JEWELLERY (0417.HK)
The jeweler said net profit for the six months ended 31 August 2012 may fall 60 per cent to 70 per cent from a year earlier, mainly due to a shift in sales mix towards lower-margin gold products and a slowing Chinese economy which affects demand.
Minth Group (0425.HK)
The company said it has agreed to buy a firm in Tianjin owned by its chairman for HK$46.51 million. Separately, it agreed to establish a 50:50 joint venture with Tokai Kogyo in Mexico to produce resin, plastic injection products, key automobile parts and components.
Next Media (0282.HK)
The group owned by Hong Kong media tycoon Jimmy Lai has agreed to sell its loss-making Taiwan TV unit to Lien Tai-sheng, owner of Taiwan’s Era Television. It will terminate its video-on-demand (VOD) services at the end of the month.
CHALCO (2600.HK), Winsway Coking Coal (1733.HK)
CHALCO has terminated its bid for 29.9 per cent stake in Winsway Coking Coal, which would have made CHALCO Winsway's biggest shareholder, as it failed to get the necessary approval from Chinese and overseas government authorities.
PYI Corporation (0498.HK)
The company said net interim profit is expected to "decrease substantially" from a year earlier.
ENN Energy (2688.HK)
The energy producer said its chief financial officer Cheng Chak Ngok has resigned all his posts in the company for personal reasons. The company said Cheng had confirmed that "there is no disagreement" with the board.
