Hong Kong Shares May See Additional Support On Monday

Hong Kong equities are expected to open with additional support as the Hang Seng Index looks to extend its recent rebound after alternating gains and losses over the past four sessions. The index ended Friday up 0.54% at 25,668.03, just below the 25,670 level, after a prior seven-session winning streak that lifted it about 4.2%. Sentiment is helped by a stronger Wall Street close and improving expectations for U.S. interest rates after July employment data came in weaker than expected, reducing the odds of another Federal Reserve rate hike next month. Asian markets are also getting a lift from a cautiously optimistic global tone, though geopolitical tensions in the Middle East could cap gains. Sector-wise, technology and resource shares provided support while financial and property stocks lagged. Crude oil’s rise on Middle East uncertainty adds a separate inflation and risk-premium backdrop.