Shares in China and Hong Kong
fell on Tuesday as investors take stock of the country's weak
economic outlook, which points to a difficult first quarter of
2019, with the impact of policy support expected later in the
year.
** At the midday break, the Shanghai Composite index was
down 0.7 percent at 2,591.37.
** China's blue-chip CSI300 index was down 0.9
percent, with its financial sector sub-index lower
by 0.5 percent, the consumer staples sector falling
1.6 percent, and the healthcare sub-index down 1.9
percent.
** Chinese H-shares listed in Hong Kong fell 1.2
percent, while the Hang Seng Index fell 1 percent to
26,921.49.
** The smaller Shenzhen index was down 0.7 percent and
the start-up board ChiNext Composite index was
weaker by 1.2 percent.
** China must be on guard against unforeseen but extreme 'black
swan' risks while fending off 'grey rhino' events, which are
highly obvious yet ignored threats, President Xi Jinping said on
Monday.
** Xi's warning came shortly after China reported its slowest
growth in 28 years for 2018, amid the trade war with the United
States and cooling domestic demand.
** In response, investors expect China to loosen monetary and
fiscal policies to boost growth. But these policies "may take
some effect but will not be able to stop economic growth from
slowing," especially with the trade war hanging in the air,
analysts at OCBC warned in a note on Tuesday.
** U.S. President Donald Trump attributed China's economic
slowdown to U.S. trade policies in a tweet on Monday, and said
it "makes so much sense for China to finally do a Real Deal, and
stop playing around!" https://bit.ly/2CCBsGM The two sides
agreed to a 90-day truce in the trade war at the start of last
December.
** It is "normal technical adjustment" for the Chinese stocks to
ease after rallying in the previous session, and the wider trend
of an equity market recovery stays intact, Wei Yi, an analyst at
Kaiyuan Securities, wrote in a memo on Tuesday.
** As of Monday's close "the Shanghai Composite has broken
through its 60-day and 90-day moving averages, two key technical
pressure points." It may take time for the index to move further
up, but once it breaks the 120-day moving average, there will be
little downward pressure, Wei added. The index retreated below
the 60-day barrier in Tuesday's trade.
** Around the region, MSCI's Asia ex-Japan stock index
was weaker by 0.8 percent while Japan's Nikkei
index was down 0.7 percent.
** The yuan was quoted at 6.8015 per U.S. dollar,
0.08 percent weaker than the previous close of 6.7961.
** The largest percentage losses in the Shanghai index were
China Securities Co Ltd, down 7.5 percent, followed
by Guangdong Rongtai Industry Co Ltd, losing 7.1
percent and Tonghua Dongbao Pharmaceutical Co Ltd,
down by 6.7 percent.
** As of 04:00 GMT, China's A-shares were trading at a premium
of 17.85 percent over the Hong Kong-listed H-shares.(Reporting by Luoyan Liu and John Ruwitch; Editing by Gopakumar
Warrier)
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)