Stock TalkMarket Open: Sino-Japan tensions likely to cast damper on HK stocks
Hong Kong stocks may consolidate at their current level as growing tensions between China and Japan overhang the market, alarming investors concerned over the possible impact on the world's increasingly interlinked second and third largest economies.
Hong Kong stocks may consolidate at their current level as growing tensions between China and Japan overhang the market, alarming investors concerned over the possible impact on the world's increasingly interlinked second and third largest economies.
"There won't be panic selling. But investors could use the tension as an excuse to take profit after stocks gained a lot in Friday's trading due to the US announcement of unlimited easing measures," said Ben Kwong, chief operating officer at KGI Asia.
Overnight, the Standard & Poor's 500-stock index closed down 1.87 points, or 0.13 per cent, to close at 1,459.32. The Nasdaq Composite shed 0.87 points, or 0.03 per cent, to 3,177.80. In London, the FTSE-100 Index lost 25.36 points, or 0.43 per cent, to end at 5868.16.
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Companies including Dongfeng Motor Group (0489.HK),Guangzhou Automobile (2238.HK), Ajisen (0538.HK), Hop Hing Group (0047.HK) and Digital China (0861.HK) may decline further due to the anti-Japan protests.
China has released a new five-year plan on the electronic information sector, which could boost output to nearly 10 billion yuan, the Securities Times reported on Wednesday.Companies including Kingsoft Corporation (3888.HK), Founder Holdings (0418.HK), Inspur International (0596.HK) may benefit.