August 13, 2010 (Chinavestor) Stock markets in Asia trailed global markets lower for the week. The Hang Seng Index (INDEXHANGSENG:.HSI) fell 2.2 percent while the Shanghai Composite Index (SHA:000001) was off 1.2 percent for the week.
Investors in Hong Kong continued the sell-off on Friday, sending the Hang Seng Index (INDEXHANGSENG:.HSI) 34.1 points or 0.2 percent lower for the day. Index heavy weight China Mobile (NYSE:CHL)(HKG:0941), the largest mobile carrier in the world, gave back most of the gains from Thursday, diving 1.8 percent for the day. Petrochina Co. (HKG:0857), another index heavy weight, shed 0.2 percent. China Shenhua Energy (HKG:1088), China's largest coal miner, fell 0.9 percent. But Zijin Mining (HKG:2899), the largest Chinese gold miner, advanced 3.3 percent as gold spot prices rose to a six month high. Chinese airliners broke four days of straight losses trimming downside for the week. China Eastern Airlines (NYSE:CEA) (HKG:0670) rose 6.6 percent followed closely by China Southern Airlines (NYSE:ZNH) (HKG:1055) and Air China (HKG:0753). ZTE Corp. (HKG:0763), the second largest Chinese telecommunication equipment maker, bounced back 3.3 percent after a 5.4 percent tumble the day before.
Trading in Shanghai was more universal on Friday. Stocks that advanced outnumbered those that fell 25 to 1 among the 50 largest listed companies. The Shanghai Composite Index (SHSA:000001) managed to rose 31.2 points or 1.2 percent on Friday. Metal stocks outperformed the broad market: Zijin Mining Co. (SHA:601899) led the advance with a 3.3 percent jump followed by Jiangxi Copper (SHA:600362) and Aluminum Corp. of China (NYSE:ACH) (SHA:601600). China Cosco Holdings (SHA:601919), the largest container shipper in the world, bounced back 2.2 percent after four days of straight losses earlier the week.
If the performance of components of the Hang Seng Index (INDEXHANGSENG:.HSI) can serve as a proxy for their NYSE listed ADRs, outlook is bright for Chinese airliners. China Eastern Airlines (NYSE:CEA) and China Southern Airlines (NYSE:ZNH) are expected to outperform on Friday, in addition to Huaneng Power (NYSE:HNP), China Unicom (NYSE:CHU) and Aluminum Corp. of China (NYSE:ACH). But China Mobile (NYSE:CHL) and Petrochina Co. Ltd. (NYSE:PTR), the largest Chinese oil producer, are under pressure before the opening bell on the NYSE.