Hong Kong Market rebounds 2.1%

Headline indices of the Hong Kong share market rebounded on Friday, 12 October 2018, as investors chased for beaten down stocks following the previous day's heavy losses amid a global sell-off and as China's September trade data came in better than expected. However, market gains were limited as investor sentiments remained low amid lingering anxiety over the Sino-U.S. trade war and rising U.S. interest rates. The Hang Seng Index inclined 535.12 points or 2.12% to 25,801.49. The Hang Seng China Enterprises Index added 206.57 points or 2.05% to 10,299.09. The sub-index of the Hang Seng tracking the Commerce & Industry sector added 3.1%, properties sector rose 1.2%, and financial sector rose 1.8%, while Utilities sector slipped 0.1%. Turnover decreased to HK$111.15 billion from HK$139.7 billion on Thursday.

China's monthly trade surplus with the United States rose to a record high of US$34.1 billion in September on the back of an escalating trade war that shows little sign of cooling. The figure, released on Friday by the customs administration, represented a 10% increase from the US$31.05 billion surplus booked for August, suggesting Washington's tariffs on imports of Chinese products have yet to have the desired effect of narrowing the trade gap between the two countries. China's trade surplus with the US in September was greater than its total trade surplus of US$31.7 billion. Its total exports grew faster than expected in the month - 14.5% year on year in dollar terms, compared with 9.8% in August - while import growth slowed to 14.3% from 20%, the customs administration said.

Shares of aviation counters inclined after rRenminbi stabilised against the US dollar and oil prices fell 3% overnight. Both China Southern Airlines (01055) and China Eastern Airlines (00670) flew off 4.4% to HK$4.31 and HK$4.32. Air China (00753) gained 2% to HK$6.68. CNOOC (00883) also gained 1.5% to HK$14.5.

OFFSHORE MARKET NEWS, US stock market tumbled for a second straight day on Thursday, rattled by rising interest rates, signs of a slowdown in the global economy and the US-China trade dispute. The Dow Jones Industrial Average slumped 2.1% to 25,052.83, down 2.1% or 545 points. The broad-based S&P 500 also dropped 2.1% to 2,728.26, while the tech-rich Nasdaq Composite Index fell 1.3% to 7,329.06.

European shares hit their lowest in more than 21 months on Thursday following a slide on Wall Street as jitters over rising US Treasury yields and signs of slowing global growth prompted broad selling of risky assets. The German DAX Index slumped by 1.5%. The French CAC 40 Index and the U.K.'s FTSE 100 Index both fell by 1.9%.

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