Hong Kong stocks fell for a second day as the lack of progress on the US debt ceiling talks continued to weigh on sentiment
Alibaba declines 2 per cent in early trading amid rumours of impending lay-offs at its cloud division
Hong Kong stocks fell for a second day as the lack of progress on the US debt ceiling talks continued to weigh on sentiment. Lenovo, Xiaomi and Xpeng slipped before their results.
The Hang Seng Index declined 1.2 per cent to 19,205.22 as of 10.50am local time, adding to the 1.3 per cent drop in the previous session. The Tech Index dropped 1.4 per cent, while the Shanghai Composite Index lost 0.7 per cent.
Alibaba Group Holding shed 1.8 per cent to HK$81.50 amid rumours that its cloud division could lay-off 7 per cent of its staff. Search engine giant Baidu slipped 1.9 per cent to HK$119.80 and Meituan lost 1.5 per cent to HK$130.80. Developer Longfor Group eased 3.5 per cent to HK$16.90, while casino operator Sands China declined 5.2 per cent to HK$24.80. NIO rose slightly.
The White House and the Republicans in Congress ended another round of debt ceiling talks on Tuesday without signs of meaningful progress, leaving traders on edge as a deadline for potential default approaches. Treasury Secretary Janet Yellen said the US could find itself unable to pay its bills as soon as June 1.
Tesla challenger Xpeng, Lenovo and Xiaomi slipped by 2.6 to 4.9 per cent ahead of their earnings cards later today. Alibaba Health lost 3.1 per cent to HK$4.74 despite topping sales estimates for the first quarter.
Two stocks debuted on Wednesday. State-owned Beijing Shenzhou Hangtian Soft soared 109 per cent in Shanghai, while Wuhu Sanlian Forging added 14.3 per cent in Shenzhen.
Asian markets traded lower amid the US debt ceiling impasse. The Nikkei 225 in Japan dropped 1.1 per cent, the Kospi in South Korea lost 0.2 per cent, while the S&P/ASX 200 in Australia fell 0.5 per cent.
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