HONG KONG, June 8 |
HONG KONG, June 8(Reuters) - Hong Kong shares are poised to start higher for a fourth straight day on Friday after China's surprise cut in interest rates but investors remained cautious, some saying the move signalled more weakness for the world's second-largest economy.
The Hang Seng index closed up 0.9 percent on Thursday, rising for the third straight day. The China Enterprises index of top locally listed mainland firms rose 0.4 percent.
China's surprise rate cut unveiled on Thursday has boosted hopes that cheaper credit will help combat its faltering economic growth and has encouraged global share markets in their belief that the major economies are stepping up stimulus.
But the central bank's cut, the first since the global financial crisis in late 2008, has also raised concerns about a deluge of May Chinese data due this weekend.
Elsewhere in Asia, Japan's Nikkei was down 1.3 percent and South Korea's Kospi was 0.2 percent lower.
STOCKS TO WATCH
* Chinese banks are seen to be in focus after China delivered twin surprises on interest rates, cutting borrowing costs to combat faltering growth while giving banks additional flexibility to set competitive lending and deposit rates in a step along the liberalisation path. The 25 basis points cut brings the official one year borrowing rate to 6.31 percent and the one year deposit rate to 3.25 percent.
* Chinese banks, facing mounting bad loans from the property market and local governments, were ordered by Beijing to clamp down on new lending to steel traders, further weighing on a sector that has racked up $400 billion in debt.
* Italian fashion group Prada warned a deepening euro zone crisis could scare away free-spending tourists who have shielded luxury firms from an uncertain global economy and who helped lift quarterly profit at the maker of coveted leather handbags and shoes. First-quarter profit doubled at the Milan-based maker of coloured Miu Miu dresses, outpacing revenue growth, but the company is not immune to concerns about the euro zone, a sluggish U.S. recovery and a possible slowdown in Asia.
* Chinese cement maker Anhui Conch warned on Thursday its net profit would fall more than 50 percent in the first half from a year ago due to weak demand and falling product prices.
MARKET EVENTS
- Agricultural Bank of China Ltd AGM in Beijing
- Beijing Enterprises Water Group Ltd AGM
- BYD Co Ltd AGM in Shenzhen
- BYD Electronic (International) Co Ltd AGM in Shenzhen
- C C Land Holdings Ltd SGM
- China Resources Power Holdings Co Ltd AGM
- Greentown China Holdings Ltd AGM in China
- Guangzhou Shipyard International Co Ltd AGM in Guangzhou
- Guodian Technology & Environment Group Corporation Ltd AGM in Beijing
- Huadian Power International Corporation Ltd AGM in Beijing
- KWG Property Holding Ltd AGM
- Phoenix Satellite Television Holdings Ltd AGM & EGM
ECONOMIC DATA
- UK PPI input and output prices for May
- UK PPI core output prices for May
- US wholesale inventories for April
- US wholesale sales for April
- US ECRI weekly index
- Australia housing finance for April
- Australia goods/services imports and exports for April (Reporting by Vikram Subhedar and Donny Kwok; Editing by Paul Tait)
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