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On Monday, Chinese stocks in Hong Kong fell 0.82% - the most in nearly two weeks.
The HSCEI Index was dragged down by automakers with the few bright spots coming from the gaming sector.
The rising likelihood of further economic sanctions against Russia has weighed down global sentiment, which saw Wall Street kicking off its week lower.
With a general lack of local market catalysts today, investors are likely to take a risk-off approach.
We could see China H-Shares test its support on the 50 day moving average, with a further support level at 10322.8.
Heading into Thursday, there will be a round of local economic data that could give some respite to markets. We will see the HSBC China manufacturing flash PMI for July and Hong Kong trade numbers for June –the market is expecting an uptick for both.
There’s also increased speculation that Chinese authorities will unveil further targeted stimulus measures for the property sector, which will be a boon for property players. Ahead of this, the current low market sentiment could give investors an opportunity to buy on dips.
