Hong Kong stocks retreat after Trump rally shooting, downbeat China data
The Hang Seng Index slipped 1.1 per cent to 18,089.63 at 11am local trading time. The Hang Seng Tech Index declined 2.3 per cent, while the Shanghai Composite Index added 0.1 per cent.
Baidu led losses falling 4.6 per cent to HK$94.90, Alibaba fell 1.2 per cent to HK$77.20 and Tencent dropped 1.4 per cent to HK$391.60. JD.com declined 3.5 per cent to HK108.10, sportswear brand Li Ning fell 3.7 per cent to HK$15.62, while Chow Tai Fook retreated 3.6 per cent to HK$8.33.
Retail sales in June grew 2 per cent year on year, which was also below market expectations of 3.4 per cent.
“The growth figures for China is a dent for risk appetite,” said Tim Waterer, chief market analyst at KCM Trade. “Retail Sales reflected the still patchy domestic demand picture in China. Industrial Production was one of the few bright spots in the data today. All up – China’s economy is still struggling for traction as evidenced by the latest batch of data.”
“The direct impact could be a firmer US dollar, as higher odds of a Trump’s presidency suggest that his inflationary policies in terms of stricter immigration, tougher trade ties and increased spending could potentially be set to pass,” said Yeap Jun Rong, Market Analyst at IG.
Traders will closely monitor China’s third plenum of the 20th Party Congress, the long anticipated meeting where the country’s leaders gather and are expected to release economic reforms.
In its trading debut in Hong Kong today, vehicle hardware maker GL-Carlink Technology Holding shares gained 0.3 per cent from its IPO price to HK$5.
Other major Asian markets were mixed. Australia’s S&P/ASX 200 added 0.7 per cent and South Korea’s Kospi retreated 0.1 per cent. Japan’s markets are shut for a public holiday.
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