February 23, 2011 (Chinavestor) Stocks have continued to fall in Hong Kong on Wednesday as Libya neared a civil war, threatening to disrupt oil supplies. The Hang Seng Index (INDEXHANGSENG:.HSI) fell 83.9 points or 0.4% on top of the 490 points drop the day before. But investors were less obsessed with the African country helping the Shanghai Composite Index (SHA:000001) recover some of the losses. The main barometer of mainland stocks eked out a small 7.1 points or 0.2% gain.
Zijin Mining (HKG:2899) (SHA:601899), the largest gold miner in China, rose handsomely in both key Asian markets as price of gold jumped. H-shares of China Southern Airlines (HKG:1055) (NYSE:ZNH), the largest Chinese carrier, bounced back up 1.1% but China Eastern Airlines (HKG:0670) (NYSE:CEA) failed to gain traction. China Mobile (NYSE:CHL), Huaneng Power (NYSE:HNP) and Yanzhou Coal (NYSE:YZC) were the only other NYSE-HKEX cross listed companies that advanced in Hong Kong on Wednesday. The Dow Jones Industrial Average (INDEXDJX:.DJI) fell hard on Tuesday with all but three of its components ending the day in the red. But index futures point to a higher open as markets have started to calm down.
Components of key Chinese ETFs were mixed in Asia on Wednesday morning.Stocks that fell outnumbered those that advanced two to one among 25 members of the iShares FTSE/Xinhua 25 China Index (NYSE:FXI). This large cap poxy suggests outlook is dim for large cap Chinese ADRs on Wednesday. But considering that China Southern Airlines (NYSE:ZNH) advanced while China Mobile (NYSE:CHL), Huaneng Power (NYSE:HNP) and Yanzhou Coal (NYSE:YZC) managed to eke out some gains for the day, not all large cap Chinese ADRs are doomed before the open.
Outlook is darkest for Aluminum Corp. of China (NYSE:ACH), Petrochina Co. Ltd. (NYSE:PTR) and China Eastern Airlines (NYSE:CEA), if components of the Hang Seng Index (IN DEXHANGSENG:.HSI) can serve as proxy for ADR trading.
Small caps were mixed in Asia this morning as components of the Guggenheim Small Cap China ETF (NYSE:HAO) testify. Small cap stocks that fell outnumbered those that advanced two to one in key Asian markets.
Earnings will contionue to drive Chinese ADRs for the rest of the week. Chinese solar maker Trina Solar (NYSE:TAL) advanced on Tuesday despite the heacy sell-off, as earnings beat estimates. But JA Solar Holdings (NASDAQ:JASO) fell as investors dismayed latest numbers.
NetEase.com Inc. (NASDAQ:NTES) is going to release Q4 numbers after the close on Wednesday.