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Rangebound trade seen ahead as dealers hunt for signs of US recovery

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With Wall Street interrupted by a mid-week holiday, Hong Kong stocks can expect a quiet four days of trading.

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The Hang Seng Index closed on Friday at 13,042.53 points, down 0.99 per cent on the week and 13.6 per cent on the first half of this year.

'The Hong Kong market will remain rangebound and market turnover will be subdued,' Phillip Securities research head Louis Wong Wai-kit said.

However, analysts warned negative sentiment could weigh on the market in the shape of Japan's tankan business confidence survey. Painting its bleakest picture since December 1999, the tankan sent Tokyo stocks 1.68 per cent down yesterday.

The United States is unlikely to provide guidance with the Independence Day holiday tomorrow.

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However, the National Association of Purchasing Manufacturers index, expected last night, and Friday's employment data for last month from the Department of Labor are expected to offer some indications as to the success of interest-rate cuts in kick-starting the US economy.

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