^HSI - HANG SENG INDEX
| Previous close | 26,848.50 |
| Open | 26,715.22 |
| Volume | 0 |
| Day's range | 26,658.32 - 26,818.44 |
| 52-week range | 24,540.63 - 30,280.12 |
| Avg. volume | 1,664,656,541 |
- Financial Times
Hong Kong hedge funds suffer biggest outflows since financial crisis
Hong Kong’s hedge funds saw their biggest withdrawals since the global financial crisis in the third quarter, as local equities sold off and concerns grew about the stability of the capital markets hub. Traders yanked a net $1bn from the city’s hedge funds, figures published by information services provider Eurekahedge on Friday showed — the biggest outflows the industry has seen since early 2009. The shift of capital comes as Hong Kong grapples with its most severe political crisis since the former British colony’s handover from the UK to China in 1997.
- Financial Times
Stocks slide as China’s growth disappoints, Draghi warns on valuations
Global stocks were in the red as data showed China’s economy grew at its slowest pace in almost three decades and Mario Draghi said there were “mild signs” of overvaluation in financial and property markets within the euro zone. The S&P 500 closed 0.4 per cent lower on Friday. For the week, the benchmark still managed to advance 0.5 per cent and now sits 1.3 per cent away from July’s record high.
- FX Empire
Weak Chinese Growth Figures Weigh on Asia Pacific Shares
China emphasized Thursday that the U.S. must remove tariffs in order for the two countries to reach a final agreement on trade, Ministry of Commerce spokesman Gao Feng said.
- Bloomberg
Hong Kong Tycoons Are $3 Billion Richer on Lam’s Housing Policy
(Bloomberg) -- In her annual policy address Wednesday, Hong Kong’s embattled leader Carrie Lam vowed to help citizens get on the property ladder.While the jury’s still out on whether changes to mortgage loan value limits and converting farmland for public housing will do that, there’s already one group prospering -- the city’s real estate tycoons.The combined wealth of six of Hong Kong’s biggest property billionaires has jumped 3.3% since Lam’s speech as shares of developers rallied. That gives the group, led by CK Asset Holdings Ltd.’s Li Ka-shing and Henderson Land Development Co.'s Lee Shau Kee, a total net worth of $98.7 billion.Making $3.2 billion in a few short hours isn’t bad, even for people as mega rich as these executives. Yet it’s the sort of windfall an ordinary Hong Kong resident could only dream of.Widening inequality has long contributed to tension in the city, and nothing exemplifies the divide between the haves and have-nots better than the sky-high cost of residential property. Hong Kong’s real estate has for years been ranked the world’s least affordable -- median property prices climbed to 21 times median household income in 2018, according to Demographia, an urban planning consulting firm.How Hong Kong’s Taxes Spawned Billionaires and Bred InequalityEven allowing first-time home buyers to borrow up to 90% of a property’s value to a maximum of HK$8 million ($1 million) -- from HK$4 million previously --- has raised questions over how useful it will actually be.Land PurchasesUnder the new measures, to buy an HK$8 million apartment borrowing 90% via a 30-year mortgage would require a monthly salary of HK$57,838, according to mortgage broker mReferral Corporation (HK) Ltd. Hong Kong’s median monthly income is just HK$17,500, government data show.The Hang Seng Properties Index, which tracks the city’s major developers, advanced 2.3% Wednesday and was up as much as 2.2% Thursday.It was also Lam’s proposal to acquire 700 hectares of land -- a significant amount of which would have to come from developers -- for public housing that spurred the stocks. The compulsory purchase of land is expected to enhance the value of farm land held by the companies.Hong Kong’s Hopeless Generation Has a Long List of Grievances“Hong Kong developers are trading at a large discount, but how much room the rally has depends on the state of the protests from here,” said Raymond Cheng, an analyst at China Galaxy International Financial Holdings Ltd. “The policies announced yesterday were a signal that though Carrie Lam wants to see housing prices decline, it won’t be a total free fall.”Wednesday’s policy address was Lam’s effort to alleviate social discontent amid the former British colony’s worst political crisis. What started as opposition to a bill to extradite suspects to mainland China has morphed into a general outcry against China’s increasing influence over the city. Government officials and business elites have acknowledged growing inequality -- particularly high housing prices -- as the main cause of frustration.\--With assistance from Pei Yi Mak and April Ma.To contact the reporter on this story: Shawna Kwan in Hong Kong at wkwan35@bloomberg.netTo contact the editors responsible for this story: Katrina Nicholas at knicholas2@bloomberg.net, Peter VercoeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Bloomberg
Stocks Decline; Retail Sales Miss Lifts Treasuries: Markets Wrap
(Bloomberg) -- U.S. stocks fell, led by energy and technology shares, as investors mulled earnings reports and the prospects of trade negotiations. Treasuries rose after retail sales unexpectedly declined.In earnings, Bank of America jumped after deal fees surged, continuing a string of strong bank results. Nexflix rose in after-hour trading on positive results. The dollar also edged lower after the retail sales report renewed expectations for an October rate cut by the Federal Reserve.“Earnings are not so bad that it causes any sort of violent market reaction,” said Jeff Mills, chief investment officer at Bryn Mawr Trust Co. “But I don’t think they’re going to surprise enough to the upside to be a catalyst for a breakout.”The S&P 500 briefly climbed from the lows of the day after President Donald Trump said a trade deal with China probably will not be signed until he meets with Chinese President Xi Jinping at the APEC summit next month in Chile.The Stoxx Europe 600 dropped, while benchmark indexes in Asia finished mostly higher, though most gauges trimmed the gains after China threatened to retaliate if the U.S. offered legislative support to pro-democracy protesters in Hong Kong. Stocks dipped in Shanghai and the yuan weakened.The pound strengthened amid signs European leaders are getting ready to gather in Brussels to clinch a deal that will see the U.K. part ways with the European Union.Elsewhere, Turkish stocks fell with the lira after the U.S. brought a criminal case against one of the nation’s largest banks, in what could be an escalation of Washington’s efforts to reprimand Ankara for its military incursion into northern Syria. Crude oil futures rose. Gold ticked higher.Here are some key events coming up this week:China releases third-quarter GDP, September industrial production and retail sales data on Friday.Here are the main movers in markets: \--With assistance from Robert Brand.To contact the reporters on this story: Claire Ballentine in New York at cballentine@bloomberg.net;Sarah Ponczek in New York at sponczek2@bloomberg.netTo contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Dave LiedtkaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Financial Times
US stocks end lower as investors digest data and earnings
Global stocks were mostly weaker on Wednesday as geopolitical tension stemming from Brexit and Hong Kong were weighed up alongside US earnings and disappointing retail sales figures. The S&P 500 ended ...
- FX Empire
Asian Shares Rise as Upbeat Brexit News Offsets IMF’s Prediction of Lower Global Growth
Asian shares were supported on Wednesday after optimistic comments on Brexit from European negotiator Michel Barnier were backed up by reports that a draft legal text over the divorce was being drawn up.
- Financial Times
Hong Kong stocks slip to sharp discount versus mainland
The Hang Seng China AH Premium Index, which measures the price differential between 69 stocks dual-listed in the two jurisdictions, has jumped to 130.7, meaning that Shanghai and Shenzhen-listed A shares typically now trade at a premium of 30.7 per cent to their Hong Kong-listed H share equivalents. Some stocks, such as Flat Glass Group, Yangtze Optical Fibre and Cable and China Galaxy Securities are trading at premiums of 160-180 per cent on the mainland market to their price in Hong Kong.
- Bloomberg
Stocks Fall as China Trade Pact Questions Linger: Markets Wrap
(Bloomberg) -- Stocks declined as investors mulled the implications of the partial trade deal reached last week between the U.S. and China. Oil retreated and the dollar strengthened.The S&P 500 Index had fluctuated most of Monday after China appeared to pour cold water on a pact touted by President Donald Trump, with people familiar with the situation saying it wanted to iron out details before signing it. Trading was about 28% below the 30-day average. A tweet from the Global Times’ editor-in-chief painted a more optimistic outlook, gave equities some support. U.S. debt markets are closed for the Columbus Day holiday.“I think given we’ve had a bit of good news, chances are we’re going to be on the doubting side this week,” said Peter Jankovskis, Oakbrook Investments LLC’s co-chief investment officer. “That’s been the natural ebb and flow of the whole process.”The iShares MSCI Turkey ETF slumped 3.9%. Trump said on Twitter that the U.S. will increase steel tariffs on Turkey back up to 50%. He also said some Turkish officials will also face sanctions and the U.S. will also stop trade negotiations with Turkey. Earlier, the nation’s stock market tumbled and its currency eased.The Stoxx Europe 600 Index closed lower, while Asia stocks climbed, helping sustain a rally in emerging-market assets after the positive conclusion of the latest round of trade talks.“I expect there will be a deal,” Treasury Secretary Steven Mnuchin said Monday on CNBC television. The sides made “substantial progress” last week in negotiations and Mnuchin said he expects Trump and President Xi Jinping to finalize the accord at a summit in Chile next month.The pound weakened, after rocketing for the past two sessions, as European Union negotiators warned that Brexit plans from U.K. Prime Minister Boris Johnson are not yet good enough to be the basis for an agreement.Elsewhere, West Texas crude oil dropped after surging the most in almost a month on Friday.Focus will soon turn to earnings season that begins with big U.S. banks including JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley.Here are some key events coming up this week:Wednesday brings a monetary policy decision in South Korea.U.S. retail sales are forecast to increase for a seventh straight month. Sales in the “control group” are also expected to rise. Consumer spending is carrying the weight of U.S. economic growth so the data will be monitored closely for any signs of slowing.China releases third-quarter GDP, September industrial production and retail sales data on Friday.Here are the main moves in markets:To contact the reporters on this story: Claire Ballentine in New York at cballentine@bloomberg.net;Sarah Ponczek in New York at sponczek2@bloomberg.netTo contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Dave LiedtkaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- FX Empire
Asian Shares Boosted by Trade Talk Optimism
“Big day of negotiations with China. They want to make a deal, but do I? I meet with the Vice Premier tomorrow at The White House,” Trump said in a tweet Thursday.
- Financial Times
US stocks rally against backdrop of limited deal on trade
US stocks trimmed their gains late in the session as the Trump administration announced it had agreed a limited deal on trade with China. Washington agreed to not raise tariffs, due to start next week, on Chinese imports in exchange for some concessions from the Asian nation, primarily on agricultural purchases. The S&P 500 finished 1.1 per cent higher, with news of the deal prompting a late sell-off.
- FX Empire
Asian Shares Finish Higher after Wild Ride
After the sharp break early in the session, Asian shares mounted a powerful comeback rally to turn higher for the day after the New York Times reported Wednesday evening stateside that U.S. President Donald Trump’s administration is set to grant licenses that would allow American firms to sell nonsensitive supplies to Huawei.
- FX Empire
Asian Shares Capped Amid Growing Uncertainty Over Trade Talks
Now, just one day before the start of trade talks, reports from China are saying the Chinese delegation may cut short its planned stay in Washington and depart on Friday, dimming hopes for a trade deal.
- Financial Times
Global stocks slide as US-China and Brexit woes weigh on markets
US stocks staged a late session sell-off as the Trump administration’s decision to impose visa restrictions on Chinese government officials connected to the mass detention of Uighurs in western China revived concerns about trade tension between the world’s two biggest economies. The late tumble saw the S&P 500 finish 1.6 per cent lower, the fourth move of 1 per cent or more in either direction — or its third 1-plus per cent drop — in the space of six sessions. The Nasdaq Composite shed 1.7 per cent and the Dow Jones Industrial Average was down 1.2 per cent.
- FX Empire
Asian Shares Boosted by Hopes of US-China ‘Mini-Deal’
U.S.-China trade talks are at the forefront, but investors are also monitoring the ongoing Brexit discussions and debating the degree of easing required from the Federal Reserve following the recent string of weakening U.S. activity indicators and the slowing in the labor market.
- Bloomberg
Hong Kong Stocks Drop Most in Asia as Lam Bans Mask Wearing
(Bloomberg) -- Hong Kong stocks fell as the city’s government said it will ban mask-wearing in a bid to deter protesters after months of violence.The Hang Seng Index slipped 1.1% to close below the key 26,000 point level. Stocks pared declines as Chief Executive Carrie Lam said the new law does not mean the government has declared a state of emergency. Property developers were the biggest losers, with Sun Hung Kai Properties Ltd. dropping the most in two months. Hong Kong’s markets are closed Monday for a holiday.Speculation circulated widely before the briefing, which was attended by Lam and her 16 ministers. The concern was that any decision to invoke emergency laws could backfire, potentially angering protesters and spurring more violence. It could also jeopardize the city’s standing as a global financial hub.“Enacting this law might damage Hong Kong’s reputation as city with freedom and a relatively stable market,” said Jackson Wong, a director at Amber Hill Capital Ltd. “This may cool down the protests but it could also escalate actions taken by the hard-core demonstrators.”Hong Kong stocks just suffered the worst quarter in four years as investors priced in escalating local tensions and a worsening economy. Corporate earnings -- which are already under pressure from a protracted U.S.-China trade war and the weaker yuan -- are expected to contract the most since the global financial crisis this year.The city’s economy is showing the strain of months of protests, with data this week showing retail sales plunged a record amount in August. A recession could take the Hang Seng measure down another 25% by the end of 2020, according to Oreana Financial Services Ltd.’s Isaac Poole.MTR Corp. dropped 1.9%. The operator of Hong Kong’s subway appealed to protesters to stop damaging facilities on the network. Some 800 access gates, 900 ticketing machines and 700 surveillance cameras have been broken during the four-month long protests, according to the firm.\--With assistance from Elena Popina.To contact the reporters on this story: Richard Frost in Hong Kong at rfrost4@bloomberg.net;Jeanny Yu in Hong Kong at jyu107@bloomberg.netTo contact the editors responsible for this story: Sarah Wells at smcdonald23@bloomberg.net, Sofia Horta e CostaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- FX Empire
Asian Shares Flatten as Uncertainty Looms Large Ahead of US Payrolls Report
A weaker than expected headline number should drive the probability of a Fed rate cut to 100%. Treasury yields are likely to plunge and demand for safe-haven gold and Japanese Yen should jump.
- FX Empire
Asian Shares Plunge as US Slaps Tariffs on EU Goods; Hang Seng Bucks Trend on Hong Kong Mask Ban
The breaking story on Thursday is that the World Trade Organization (WTO) gave the Trump administration the right to put tariffs on $7.5 billion in European goods.
- FX Empire
Global Economic Slowdown Fears Pressure Asian Shares
Given the escalating violence in Hong Kong, traders will be keeping a keen eye on the Hong Kong retail sales data for August. The sector has taken a hit amid protracted protests in the city that have lasted for months and periodically degenerated into violence.
- Bloomberg
Kingston Securities’s Wong Doesn’t See Much Upside for Hong Kong Market
Oct.04 -- Dickie Wong, executive director of research at Kingston Securities, discusses the Hang Seng index, valuation and his outlook for the market. He speaks on “Bloomberg Markets: China Open.”
