Hong Kong market falls; another bid for AXA keeps Australian market busy

<p>The Hong Kong Market extended its fall for a second day, led by banks and property developers after a report showed China’s biggest lenders have […]</p>

The Hong Kong Market extended its fall for a second day, led by banks and property developers after a report showed China’s biggest lenders have stopped new loans to real estate companies for the remainder of the year.

All four major Chinese mainland banks weakened today.  ICBC led the fall losing over 2% in the early trading session. Property developers China Overseas Land and Investment Company (0688.HK) and China Resource Land (1109.HK) lost 2.6% and 1.6% respectively by the first half closing.

Singapore Strait Times Index dropped more than 0.5% in the first trading session as continuing profit taking activity weighed down the market. Most of commodity suppliers weakened on Monday, with Olam International and Noble group losing 2.46% and 2.34% respectively.

Comfortdelgro Corp, the largest taxi and bus operator, gained over 2% after the company released its third quarter net profits – up 10% from a year earlier.

News of a renewed deal to for AXA Asia Pacific has buoyed the Australian share market (-5 to 4688) in the face of negative leads from overseas. Market leaders in resources and finance gave up earlier gains, but sharp rises in AXA and AMP helped the Australian market to remain close to square.

The most consistent performers today were the defensive sectors. Consumer staples stocks were solid, held up by retail interests Woolworths and Wesfarmers. Healthcare was strong and consumer discretionary stocks were higher, powered by gains in media shares as the sector heats up on perceptions of leverage to growth.

Energy and resource stocks were lower across the board following falls from highs in oil and gold. Property trusts are also down, reversing recent optimism in the sector.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (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.