HK Stocks Drop Despite Overnight Global Rally

Hong Kong stocks went into the break on Tuesday on a negative note as traders struggled to build on the previous day's gains and a global rally.

The Hang Seng Index was down 0.6 percent, to 23,335, an hour into the second session.

On the mainland, the Shanghai Composite Index was up 0.6 percent, to 3,236 as the second session got underway, while the Shenzhen Composite Index rose 1.3 percent, to 2,153.

Tokyo was in negative territory along with Wellington and Manila, though Seoul, Singapore and Jakarta all posted nice gains. Sydney and Taipei were also up.

Investors will be keeping an eye on the upcoming first presidential debate between Donald Trump and Joe Biden, as Trump is under pressure after a report at the weekend said he had paid barely any federal income tax for years.

But while Biden continues to lead in polls, AxiCorp's Stephen Innes said: "Prediction markets show that Joe Biden's lead over Trump has narrowed from +24 in late July to +10-6, depending on which cohorts you follow."

"A more convincing showing by the incumbent could drive concerns around negative US foreign policy implications for China." (AFP)

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