UPDATE 1-China stocks down as investors awaited further recovery data

** Hang Seng Index lost 0.52% and Hang Seng China Enterprises Index slipped 0.72%. ** Asia's stock markets jumped on Thursday after Powell said a "disinflationary" process was underway, bolstering risk appetite and expectations that the U.S. central bank will soon end its monetary tightening streak. ** The Hang Seng Tech Index rose 0.02%, with internet and tech stocks leading gains. ** Hong Kong-listed Weibo shares surged 7.48%, Baidu jumped 4.99%.


Reuters | Shanghai | Updated: 02-02-2023 14:54 IST | Created: 02-02-2023 14:34 IST
UPDATE 1-China stocks down as investors awaited further recovery data
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China and Hong Kong stocks retraced gains seen in the early trading hours of Thursday and finished lower, as investors stayed on the sideline and awaited further signs of recovery in the pandemic-hit Chinese economy. ** China's blue-chip CSI 300 Index lost 0.35% at close, while the Shanghai Composite Index added 0.02%. ** Hang Seng Index lost 0.52% and Hang Seng China Enterprises Index slipped 0.72%.

** Asia's stock markets jumped on Thursday after Powell said a "disinflationary" process was underway, bolstering risk appetite and expectations that the U.S. central bank will soon end its monetary tightening streak. ** The Fed scaled back interest rate hike to 25 basis points as expected, but said benchmark overnight interest rate will be increased further and remain elevated at least through 2023.

** China published draft rules on Wednesday to broaden the registration-based initial public offering (IPO) system, marking a big step towards reforming the world's second-biggest stock market. ** Citic and CICC wil be key beneficiaries, as reform will boost their A share underwriting fees, JP Morgan said in a research note.

** Hong Kong shares of CICC rose 1.43%, while Citic dropped 0.65%. ** By sector, semiconductor in China jumped 1.65%, while the CSI Media Index climbed 1.07%. In Hong Kong, the healthcare index rose 1.58%.

**"Further downside of the Hang Seng Index will likely be capped at the 20-day moving average, at 21,600, as the positive sentiment from China and Hong Kong reopening remains intact," said Alvin Cheung, associate director at Prudential Brokerage. ** The Hang Seng Tech Index rose 0.02%, with internet and tech stocks leading gains.

** Hong Kong-listed Weibo shares surged 7.48%, Baidu jumped 4.99%. Kingsoft rose 6.47%. ** “One driver for further upside of the Hang Seng Index is China big-cap tech stocks," said May Ling Wee, a portfolio manager at Janus Henderson Investors.

** "If internet companies can show better revenue growth this year, as their businesses recover alongside the economy, this will be a driver of their share price and thereby the Hang Seng Index."

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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