Global Market: Hang Seng dips as real estate, financial shares face selling pressure

Hong Kong stocks edged lower on Monday as selling in property developers and financial heavyweights offset modest gains in technology shares, with trading volumes subdued as mainland Chinese markets remained closed for the National Day holiday, Reuters reported.

The benchmark Hang Seng Index fell 0.08% by midday, while the Hang Seng China Enterprises Index was little changed, according to Reuters.

Rate-sensitive sectors remained under pressure. The real estate sector declined 0.9%, while an index tracking major banks and insurers fell 0.7%.

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Technology stocks provided some support, with the Hang Seng Tech Index rising 0.3%. Semiconductor and printed circuit board stocks led the gains. Kingboard Laminates surged 9%, while Hua Hong Grace Semiconductor climbed 4%.

China's onshore financial markets are closed from Oct. 1 through Oct. 7 for the National Day holidays, with trading scheduled to resume on Oct. 8. Investors are closely watching travel and retail spending during the week-long Golden Week holiday for early indications of consumer demand heading into the fourth quarter.

Reuters reported that Citi analysts viewed early Golden Week activity as underwhelming, with retail and tourism spending likely weakening on a per-traveller basis despite steady visitor numbers.

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Among individual stocks, Budweiser Brewing Company APAC fell 2.1% to HK$5.555, its lowest level since the company's September 2019 debut.

The brewer expects to incur a $52 million non-underlying withholding tax charge following an internal restructuring involving some of its mainland Chinese subsidiaries. Reuters reported that the restructuring aims to improve capital efficiency.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)
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