Hong Kong stocks are expected to come under pressure in the week ahead, with the city's third land auction this year and the trading debut of electricity generator China Power in focus.
Markets are likely to slip early in the week, tracking a weak showing on Wall Street after weaker-than-expected US jobs figures for September fuelled concerns about the strength of the world's largest economy. Record high oil prices are also likely to weigh on regional stock markets.
The blue-chip Dow Jones industrial average shed 0.69 percent on Friday to 10,055.20, while the tech-heavy Nasdaq Composite Index fell 1.47 percent to 1,919.97.
Hong Kong stocks also ended the week on a lower note. The blue-chip Hang Seng Index fell 0.6 percent on Friday to 13,241.46 and posted a paltry 0.93 percent rise over the week, despite hitting a seven-month high on Monday.
PROPERTY IN FOCUS: All eyes will be on the government land auction on Tuesday for an indication of developer sentiment over the direction of Hong Kong property prices, a key pillar of the local economy.
The auction of two plots of land worth an estimated HK$10.5 billion (US $1.35 billion) is expected to attract fierce bids from land-hungry developers eager to build new housing stock in a rising market.
But traders said investors were likely to sell property shares no matter what the result, given they have rallied sharply in the third quarter.
"It could be quite volatile. After the land auction results the market could move lower," said Alex Tang, research director at Core Pacific Yamaichi International.
The Hang Seng Properties sub index, which includes property firms such as Sun Hung Kai Properties and Cheung Kong Holdings, has gained 12.6 percent so far this year, outperforming a 5.2 percent rise in the main index.
A fresh line-up of stock listings will take centre stage toward the end of the week, with China Inc's latest IPO, China Power International Development Ltd, due to start trading on Friday.
The Beijing-controlled firm, which raised US $321.1 million in its IPO, has generated heavy demand from retail and institutional investors due to its plans to pay 25 percent of its profits as dividends on heavy power demand in fast-growing China.
China Power is seen as the first China IPO to generate enthusiasm for new mainland plays after a summer lull.
Companies reporting in the coming week include property development firm New World Development, which posts results on Friday after issuing a profit warning due to legal disputes involving its listed unit, New World TMT Ltd.