I think there was some minor selling pressure on telecom stocks as the market continued to see a weaker European telecom sector due to the high cost of Germany's third-generation mobile-phone licenses.

The market is still waiting for HSBC results, which will have a big impact on the direction of the market.

Property shares had a technical rebound, but interest rate concerns will still affect properties until there are signs that the U.S. interest rate cycle will end.

Bank of China's results were quite good; double-digit growth can be taken as good results for a bank. That injected confidence into the market.

The index tried to challenge 18,000 but failed, so that triggered profit taking. Tokyo's slide also depressed sentiment. If the HSI breaks 17,400 that will be the first sign that sentiment is weakening.

Trading seems to be focusing on selective counters because investors are cautious amid interest rate fears.