Hong Kong stocks end flat after choppy session as regional political tensions weigh
Shanghai Composite up for a 3rd day after positive economic data on China’s services sector, giving some support to Hong Kong shares
Hong Kong stocks closed little changed on Tuesday after a choppy session with investor sentiment still affected by the regional political tensions that had troubled the market the day before.
The Hang Seng Index fluctuated between 27,685.3 and 27,871.76 during the day before closing up 1.09 points at 27,741.35. The index had fallen for three consecutive sessions before Tuesday.
The Hang Seng China Enterprises Index, known as the H-share index, was up 0.1 per cent, or 8.92 points, to close at 11,191.59.
Daily turnover decreased 12 per cent to HK$77 billion (US$9.8 billion) from Monday.
Analysts said North Korea’s nuclear test on Sunday has sparked risk-off trading across the globe and concerns still weighed on the local markets, especially after some aggressive rhetoric from the US, whose ambassador to the United Nations said North Korean leader Kim Jong-un was “begging for war”.
“Gold prices continue to rise, indicating that the market sentiment hasn’t improved yet,” said Chan Wai-chung, an analyst with Bright Smart Securities.