Mail track

Hong Kong stocks trail Asian markets lower; China rises on stimulus hopes

Content of the article

SHANGHAI — Hong Kong stocks trailed other Asian markets lower on Thursday amid a bleak outlook for global growth, but Chinese stocks gained on bets that Beijing will roll out more stimulus to revive an economy affected by coronaviruses.

** The Hang Seng Index fell 1.5% to 19,650.77 in morning trade, while the Hong Kong Chinese Companies Index lost 1.3% to 6,773.42.

Content of the article

**In mainland China, the bluechip CSI300 index rose 0.1% to 4,082.69, while the Shanghai Composite index gained 0.2% to 3,209.87.

Advertisement 2

Content of the article

** MSCI’s broadest index of Asia-Pacific stocks outside Japan fell 1.5% amid further signs of economic weakness.

** Regional PMIs for South Korea, Japan and China all pointed to slowing global economic activity, high inflation, rising interest rates and war in Ukraine having wreaked havoc.

** Although China’s inflation is modest and the country’s interest rates continue to decline, further outbreaks of COVID-19 and a worsening housing crisis threaten the nascent economic recovery.

** Southern China’s tech hub Shenzhen tightened COVID-19 restrictions as cases continued to rise on Thursday, while Chengdu – the capital of southwestern Sichuan province – announced that she would conduct mass COVID-19 testing from Thursday to Sunday.

Advertisement 3

Content of the article

** “With virus disruptions spreading again, foreign demand cooling, the real estate sector still in a downward spiral and stimulus failing to gain traction, there is little reason to s ‘expect a near-term turnaround,’ wrote Julian Evans-Pritchard, senior China economist at Capital Economics.

**Underlining the urgency of stimulating the economy, China said it would release detailed steps for recently announced economic policy measures in early September.

**China’s real estate and energy shares surged on Thursday as investors bet on fresh policy support.

** “The road to recovery will be uneven,” said Ting Lu, chief China economist, Nomura. “We expect more policy easing and stimulus measures.”

**But most sectors in Hong Kong fell, with consumers and businesses among the biggest decliners. (Reporting by Shanghai Newsroom; Editing by Rashmi Aich)

Advertising

comments

Postmedia is committed to maintaining a lively yet civil discussion forum and encourages all readers to share their views on our articles. Comments can take up to an hour to be moderated before appearing on the site. We ask that you keep your comments relevant and respectful. We have enabled email notifications. You will now receive an email if you receive a reply to your comment, if there is an update to a comment thread you follow, or if a user follows you comments. Visit our Community Rules for more information and details on how to adjust your E-mail settings.