Investors lost their risk-taking appetite painting Tuesday's morning trading session in red.
TORONTO, April 12, 2017 /CNW/ -- Geopolitical concerns over tension in the Middle East and North Korea were the main drivers behind the market sell of this morning. Energy stocks were the biggest losers, a move set off by China's custom department order to return all North Korean coal, Excon Fuji Securities reported.
Hang Seng China Enterprises Index (HSCEI) closed the day at 10,165.98 points down 87.81 point or 0.86%, while Hong Kong's Hang Seng Index (HIS) finished the day down 173.72 points or 0.72% at 24,088.46.
"Political tension in the region is the main driver for the down side move, we can see that China and the United States have established a relationship after the meeting last week. Investors have not been convinced. Energy stocks, coal miners saw the biggest decline with the markets falling across the board," said Daniel Sharp, Head of Corporate Trading at Excon Fuji Securities.
The United States announced their intention to deploy defense missiles in South Korea helped the defense stocks to gain 2.2 percent by the middle of the day. China's top 300 companies index CSI300 lost 0.7 percent at 3,481.28, while Shanghai Composite Index (SSE Composite) shed 0.5 percent, to 3,254.24.
Financials extended loses today with Hang Seng Financial Sector Index HIS-Finance losing 211.51 point or 0.65 percent. China's banking regulator tightened controls by issuing new risk guidelines and fined 17 financial firms over 42.9 million Yuan for being involved in operations without prior approval.
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SOURCE Excon Fuji Securities