China, Hong Kong stocks give up gains as Middle East tensions flare

Hang Lung Properties

03/01/2020 04:55

* SSEC -0.3%, CSI300 -0.4%, HSI -0.2%
    * HK->Shanghai Connect daily quota used 3.5%, Shanghai->HK
daily
quota used 3.2%
    * FTSE China A50 -0.7%

    SHANGHAI, Jan 3(Reuters) - China and Hong Kong stocks turned
negative on Friday, as investors worried about heightening
geopolitical tensions in the Middle East after U.S. air strikes
killed a top Iranian commander.    
    ** The Hang Seng index  .HSI  fell 0.2% to 28,495.11, after
climbing as much as 1.2% to a six-month high, while the Hong
Kong China Enterprises Index  .HSCE  lost 0.3% to 11,291.30.
    ** On the mainland, the CSI300 index  .CSI300  dropped 0.4%
to 4,135.46 at the end of the morning session, while the
Shanghai Composite Index  .SSEC  lost 0.3% to 3,076.01. 
    ** Iranian Major-General Qassem Soleimani, head of the elite
Quds Force and top Iraqi militia commander Abu Mahdi al-Muhandis
were killed early on Friday in a U.S. air strike on their convoy
at Baghdad airport, the Pentagon and Iran said.  urn:newsml:reuters.com:*:nL8N2973J9 
    ** The tensions in the Middle East after the U.S. air strike
was the main reason that knocked Hong Kong stocks off from a
six-month high, Ample Finance Group analyst Alex Wong said. 
    ** Investors flocked to gold for shelter, pushing the
precious metal to a four-month high.  GOL/ 
    ** Besides, market participants also tended to pocket gains
after a recent rally, Wong added.
    ** The benchmark Hang Seng index had advanced 7% in the last
month of 2019 amid signs of progress in Sino-U.S. trade talks.
    ** In China, worries over corporate earnings surfaced as
companies began to publish annual estimates for 2019 and 2020,
denting sentiment further for markets in the country.  
    ** The world's most valuable liquor maker Kweichow Moutai
 600519.SS  dropped 4% to a near four-month low, extending its
sharp correction from Thursday, after the consumer giant
forecast full-year profit below estimates.  urn:newsml:reuters.com:*:nL4N29809C 
    ** There could be other blue-chip companies whose earnings
estimates might disappoint, China Fortune Securities' analyst
Yan Kaiwen said.  
    ** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  fell 0.09%.
    ** The yuan  CNY=CFXS  was quoted at 6.9678 per U.S. dollar,
0.05% weaker than the previous close of 6.9643. 
    ** By 0402 GMT, China's A-shares were trading at a premium
of 26.45% over the Hong Kong-listed H-shares.

 (Reporting by Luoyan Liu and Brenda Goh; editing by Uttaresh.V)
 ((luoyan.liu@thomsonreuters.com; Reuters Messaging:
luoyan.liu.thomsonreuters.com@reuters.net))