Hong Kong, Shanghai indexes end higher for sixth straight day
- Property stocks were among gainers in Hong Kong, bolstered by expectations for an interest-rate cut next month from the US Federal Reserve
- Banking stocks helped to lift the Shanghai Composite 0.2 per cent higher for the session
Hong Kong and Shanghai stocks closed higher for the sixth consecutive session on Monday, amid a general sense of caution as investors looked ahead to the gathering of world leaders at the G20 Summit in Osaka from Friday.
The US-China trade negotiations are expected to resume, with presidents Xi Jinping and Donald Trump planning to meet on the sidelines of the summit.
The Hang Seng Index closed up 0.14 per cent, or 39.29 points higher at 28,513, led up by property stocks, bolstered by expectations for an interest-rate cut next month from the US Federal Reserve.
Low turnover on the main board was seen as evidence of the prevailing caution, with investors trading a total of HK$69.78 billion (US$8.93 billion) worth of shares, the lowest level since last Monday.
Linus Yip, chief strategist at First Shanghai Securities, said while investors refrain from taking aggressive bets ahead of Friday’s summit meeting, the 9.42 per cent loss in the Hang Seng Index in May has reduced selling pressure on blue chips.
“Even if the G20 Summit didn’t yield an immediate outcome of de-escalating the US-China trade war, I’d expect the Hang Seng to move horizontally rather than dropping further, given in May it has dropped quite considerably,” said Yip.