China blue-chips fall ahead of holiday; Hong Kong tracks global peers lower

Chinese blue-chip stocks closed down on Thursday as investors were cautious ahead of a week-long holiday, while Hong Kong shares tracked global peers lower on concerns around high interest rates. ** The blue-chip CSI 300 Index was down 0.3% at close, while the Shanghai Composite Index edged up 0.1%.

Chinese blue-chip stocks closed down on Thursday as investors were cautious ahead of a week-long holiday, while Hong Kong shares tracked global peers lower on concerns around high interest rates.

** The blue-chip CSI 300 Index was down 0.3% at close, while the Shanghai Composite Index edged up 0.1%. ** Hong Kong's Hang Seng Index finished 1.4% lower and the Hang Seng China Enterprises Index dropped 1.3%.

** World stocks eyed their longest losing streak in two years, while oil prices scaled one-year highs, as worries deepened about persistently high interest rates, sending investors to shelter in the safety of a surging U.S. dollar. ** Market participants are set to look into consumption data during China's a week-long National Day holiday that begins on Friday. Mainland markets would reopen on Oct. 9.

** "Uncertainty during the holidays tend to curb investor risk appetite," said Capital Securities in a note, adding they expect markets would rebound after the holidays. ** Consumer staples lost 1.3%, while shares in semiconductors, defense security and automobiles rose between 1.3% and 2%.

** In Hong Kong, tech giants slumped 1.5% and mainland property developers lost 1.4%. ** Ting Lu, chief China economist at Nomura, said they remain cautious, although "recent activity data showed a mild improvement in August, and high frequency data have pointed to a stabilization of growth in September."

** "With weak exports, the ongoing downward spiral of the property sector (especially in low tier cities) and low confidence within the private sector, we expect economic conditions to remain poor or even worsen again in coming months." ** Trading in shares of China Evergrande were suspended after a report said its chairman had been placed under police surveillance, intensifying concerns over the developer's future as it struggles with a growing threat of liquidation.

 

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