With the results of most leading companies out of the way in the earnings season, Hong Kong is expected to turn to Wall Street for direction this week.
That does not bode well for today's opening as United States stocks fell on Friday following poor profit indicators from McDonald's and Nike.
'Most of [Hong Kong's] blue chips have announced results in the past two weeks so this week we'll focus on the US side, because every time as we get close to the end of the quarter . . . some US firms announce profit warnings, like McDonald's did on Friday,' Asia Financial Securities vice-president Ricky Tam Siu-hing said.
The Hang Seng Index fell 3.09 per cent last week, dragged down by property stocks after results from companies such as Henderson Land and Cheung Kong underlined how tough it was for the sector.
Henderson dropped 9.88 per cent on the week to HK$31, while Cheung Kong slid 3.53 per cent to $68.25. New World Development, which surprised on the upside, eased 0.75 per cent to $6.55.
Developers are also under pressure on concerns the US Federal Reserve will raise rates this year.
