* HSI -0.5 pct, CSI300 -0.2 pct, Shanghai Comp -0.1 pct
* Turnover dips a fourth as caution sets in ahead of US
* Financials weak on profit-taking, fund inflow hopes aid
* Foxconn posts biggest ever single-day jump after Citi
By Vikram Subhedar
HONG KONG, Nov 5 Hong Kong shares eased slightly
on Monday, as caution ahead of the U.S. presidential elections
spurred mild profit-taking in financials after a strong run-up
last week lifted the Hang Seng Index to a 15-month high.
The Hang Seng ended 0.5 percent down at 22,006.4 points,
after recording a 2.6 percent gain last week. The index is up
nearly 20 percent this year.
Bucking the overall weak trend were shares of Foxconn
International Holdings, the world's biggest contract
maker of cellphones, which surged as much as 35 percent after
Citigroup upgraded the stock to a 'buy' and said it expected the
firm to start assembling iPhones this year. [I D :nL3E8M50KF]
Shares closed up 31.9 percent in their biggest ever
single-day jump adding $820 million to Foxconn International's
market value. Foxconn shares are still down nearly 28 percent
The China Enterprises Index, one of Asia's best
performing benchmarks last month, was down 0.6 percent.
On the mainland, the CSI300 of the top Shanghai
and Shenzhen listings closed down 0.2 percent and the Shanghai
Composite eased 0.1 percent.
"Essentially risk appetite is still there ,but it's a bit
subdued," said Tom Kaan, a director at Louis Capital Markets in
Hong Kong, adding that the market may be taking its lead from
stocks on Wall Street which fell despite better-than-expected
"But the flow of funds into Asia is on and Hong Kong is one
of the biggest beneficiaries," said Kaan, recommending investors
to keep adding blue chips such as Hutchison Whampoa on
Persistent capital inflows into Hong Kong has forced the
territory's monetary authority to intervene 10 times in two
weeks to defend its currency peg as money flowing in pushed the
Hong Kong dollar to the strong end of its trading range.
Hopes of continued inflows supported Hong Kong property
shares, the only sub-sector to trade higher on Monday.
The property sub-index was up 0.3 percent .
Those gains were not enough, however, to offset
profit-taking in index heavyweights such as HSBC Holdings
and Industrial and Commercial Bank of China (ICBC)
which fell 0.3 percent and 1.3 percent, respectively,
after their rally last month.
HSBC reported third-quarter results after market hours and
said it posted profits before taxes of $3.5 billion and said
potential financial penalties in the U.S. for lax anti-money
laundering controls in Mexico could be significantly higher than
the amount it had set aside.
The bank took a $1.15 billion hit to cover a potential fine
in the U.S and UK mis-selling, having earlier set aside $700
million in July.
Its London-listed shares were trading down 2.5
percent, extending losses after the earnings.
Financials were weak on the mainland as well with China Life
down 0.8 percent and rival insurer Ping An
off 0.7 percent. Banking shares were on the backfoot
led by Bank of China which was down 0.7 percent.