Hong Kong’s stock market is likely to drop for a second day on Tuesday after US benchmarks lost some momentum and declines in crude oil triggered safe-haven demand.
The Hang Seng Index futures spot November contract fell 0.82 per cent, or 245 points, to 29,525 in the pre-trade session on Tuesday morning, while Hang Seng China Enterprises Index futures dropped 0.30 per cent, or 36 points, to 11,775.
On Monday, US markets were weighed by declines in chipmakers after touching record highs, with the S&P 500 falling marginally 0.04 per cent to 2,601.42 and the Nasdaq Composite easing 0.15 per cent to 6,878.52. The Dow Jones Industrial Average, however, edged up 0.1 per cent to 23,580.78.
The Hang Seng Index fell on Monday along with mainland shares, which sank to a three-month low, because of concerns over regulatory oversight that may result in tighter liquidity.
A sell-off in large Chinese companies started last week after Beijing published draft asset-management policy guidelines that would ban financial institutions from guaranteeing investors against losses.
Markets’ attention may also return to North Korea’s nuclear ambitions after Bloomberg cited Kyodo News early on Tuesday as saying that Japan had detected radio signals that suggests the hermit kingdom may be preparing for a missile launch test. The radio signals could be caused by winter training by the country’s military, Kyodo said.
Other Asian markets were mixed early on Tuesday morning. South Korea’s Kospi was up 0.15 per cent and the Sydney All Ordinaries rose 0.19 per cent but Tokyo’s Nikkei 225 lost 0.17 per cent, falling to 22,458.17.