Hong Kong shares weaker as rally pauses; Foxconn surges

HONG KONG Mon Nov 5, 2012 8:06am GMT

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HONG KONG Nov 5 (Reuters) - Hong Kong shares eased slightly on Monday, as caution ahead of the U.S. presidential election spurred mild profit-taking after a strong run-up last week lifted the Hang Seng Index to a 15-month high.

The Hang Seng Index closed 0.5 percent lower at 22,006.4 points, after gaining 2.6 percent last week. The index is up nearly 20 percent this year.

On the mainland, the CSI300 of top Shanghai and Shenzhen listings closed down 0.2 percent, while the Shanghai Composite ended down 0.1 percent with financials the biggest drag on the indices.

HIGHLIGHTS:

* Foxconn International Holdings, the world's biggest contract maker of cellphones, 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. Foxconn shares are still down nearly 28 percent this year.

* Profit-taking in index heavyweights such as HSBC Holdings and Industrial and Commercial Bank of China (ICBC) weighed on the benchmarks and offset strength in property developers. HSBC, scheduled to release third-quarter results after market hours, fell 0.3 percent while ICBC closed down 1.3 percent.

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