HSI Falls, Energy Stocks Shoot Up On Saudi Attack

Hong Kong stocks fell in the morning on Monday following last week's rally, with traders also spooked by fresh violent protests in the city at the weekend.

The Hang Seng Index shed 1 percent, to 27,079 by the break.

On the mainland, the Shanghai Composite Index was 0.1 percent up at midday break after some volatile trade, while the Shenzhen Composite Index rose 0.5 per cent to 1,689.

Oil prices saw a record surge on Monday after attacks on two Saudi facilities slashed output in the world's top producer by half.

The surge in crude lit a fire under energy firms, with Hong Kong-listed CNOOC up more than 6 percent and PetroChina 5 percent higher.

However, airlines took a hit from the prospect of higher fuel costs. Cathay Pacific dropped almost 3 percent and Air China dropped 2 percent in Shanghai. Qantas dived more than 4 percent in Sydney.

Most Asian stock markets were down after last week's rally, with investors awaiting a key Federal Reserve policy meeting this week hoping for another cut in interest rates.

Seoul gained 0.3 percent with Taipei 0.4 percent higher. Singapre shed 0.5 percent, Sydney gave up 0.1 percent and Jakarta sank 1.8 percent. There were also losses in Manila and Wellington. Tokyo was closed for a holiday.

On foreign exchanges, higher-yielding currencies dropped as traders shifted to safe-haven units such as the yen and dollar, while gold – a go-to asset in times of uncertainty – rose more than 1 percent.

The pound held its own around seven-week highs owing to easing fears of a no-deal Brexit. (AFP)

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