Asian markets lower on China factor; Cathay Pacific shares dip

<p>The Hang Seng index fell 165 points or 0.7% to 23265 before noon with energy and banking sectors leading the fall. Index heavyweight Cathay Pacific […]</p>

Jian

The Hang Seng index fell 165 points or 0.7% to 23265 before noon with energy and banking sectors leading the fall.

Index heavyweight Cathay Pacific dropped 6.12% after the company cut its profit forecast by 40% next year. Other blue chip stocks including CNOOC, Petrol China and Bank of China fell as concerns over tightening measures in China continued to weigh down the market.

Today’s report showed that China may introduce extra measure to curb inflation on housing prices. There were also speculations that other cities might follow if the Beijing initiative is successfully implemented.

The Hang Seng China Enterprise index, which measures the performance of Chinese companies listed in Hong Kong stock market, underperformed the market today, losing 1.4% in early trading session.

The Singapore stock market was down 0.28% at midday along with other Asian markets. Shares in Singapore Exchange Limited was up 0.87% after the Australian competition regulator ACCC gave the initial go ahead to the proposed merger between SGX and ASX. However, the deal has still to go through other regulatory hurdles.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.