Hong Kong stocks fell as investors adopted a cautious stance while waiting for stronger signals of economic recovery from China and more quarterly earnings report cards from tech giants.
The Hang Seng Index slipped 0.3 per cent to 19,916.70 as of 10.05am local time. The Tech Index was little changed and the Shanghai Composite Index slipped 0.3 per cent.
Manufacturer Techtronic Industries plunged 3.8 per cent to HK$79.75, Wuxi Biologics fell 2.4 per cent to HK$45.60 and Hansoh Pharmaceuticals fell 2.5 per cent to HK$13. Hong Kong’s biggest lender HSBC fell 1.3 per cent to HK$58.90 and logistics company Orient Overseas International fell 1.5 per cent to HK$151.50.
Recent economic data released by China has proved underwhelming, and investors are looking to tech giants’ quarterly earnings this week for stronger signals of recovery.
Baidu’s first-quarter results, announced on Tuesday, beat expectations with 31 billion yuan in revenue and profit of 5.4 billion yuan. The report sent its stock jumping 2.9 per cent to HK$127.90.
Alibaba added 1 per cent to HK$86.60, while Tencent fell 0.2 per cent to HK$344.20. Tencent is expected to release its report card later today, while Alibaba’s earnings report will be out tomorrow.
Elsewhere, investors are waiting to hear whether the US will raise its debt-ceiling – an upper limit on government borrowing – later this week. President Joe Biden and House Speaker Kevin McCarthy said they were hopeful a deal will be reached. Failure to do so would likely trigger a default and send shockwaves across global financial markets.
One company began trading in Shenzhen. Software company Fengzhushou surged 73 per cent to 41 yuan.
Asian markets were mixed. Japan’s Nikkei 225 climbed 0.4 per cent and Australia’s S&P/ASX 200 fell 0.7 per cent, while South Korea’s Kospi rose 0.2 per cent.
