Asian markets lower on China factor Cathay Pacific shares dip

The Hang Seng index fell 165 points or 0.7% to 23265 before noon with energy and banking sectors leading the fall.

Index heavyweight Cathay Pacific dropped 6.12% after the company cut its profit forecast by 40% next year. Other blue chip stocks including CNOOC, Petrol China and Bank of China fell as concerns over tightening measures in China continued to weigh down the market.

Today’s report showed that China may introduce extra measure to curb inflation on housing prices. There were also speculations that other cities might follow if the Beijing initiative is successfully implemented.

The Hang Seng China Enterprise index, which measures the performance of Chinese companies listed in Hong Kong stock market, underperformed the market today, losing 1.4% in early trading session.

The Singapore stock market was down 0.28% at midday along with other Asian markets. Shares in Singapore Exchange Limited was up 0.87% after the Australian competition regulator ACCC gave the initial go ahead to the proposed merger between SGX and ASX. However, the deal has still to go through other regulatory hurdles.

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