Hong Kong, Shanghai Stocks Drop In Cautious Trade

Hong Kong stocks sank on Tuesday morning, as hesitant investors moved cautiously ahead of a deluge of corporate earnings this week.

The Hang Seng Index dropped 0.1 percent, to 29,938 by the break.

On the mainland, the Shanghai Composite Index lost 0.4 percent, down to 3,202 while the Shenzhen Composite Index gave up 0.9 percent, to 1,736.

Tokyo stocks were trading down with profit-taking before 10 days of holidays in Japan weighing on the market.

With many markets opening after an extended Easter break, Taiwan, Singapore were all down, while Australia and Seoul were trading up.

"Some of the world's biggest technology companies are reporting earnings this week as well as a raft of the big European banks," Nick Twidale, chief operating officer at Rakuten Securities Australia, said in a note to clients.

"Investors will be hoping for some better-than-expected results from both groups to keep the topside momentum in global equities, however if the data starts to show a significant slowing across these key industries then expect both stocks and risk trades to start to come under some heavy pressure."

Major earnings releases expected this week include Amazon, Facebook, Microsoft, Exxon Mobil and auto maker Tesla.

Aerospace giant Boeing will report earnings on Wednesday for the first time since a deadly March 10 plane crash plunged the company into crisis-mode. (AFP)

______________________________