Alibaba Falls Nearly 2%, Nio Slides 9%: What's Fraying Hang Seng Investor Nerves Today

KEY POINTS

• Shares of Nio fell over 9%, while Xpeng and Li Auto stocks lost over 4% in morning trade.
• Alibaba shares were trading over 2% lower.
• China’s imports and exports shrank in October, with outbound shipments declining 0.3% compared to a year earlier.

Hong Kong stocks opened in the red on Tuesday, with the benchmark Hang Seng dipped 0.08% lower as investors and traders remained cautious ahead of the U.S. mid-term election on Tuesday, as well as consumer price inflation data due later this week.

Shares of Nio fell over 9%, while Xpeng and Li Auto lost over 4% in morning trade. Alibaba shares were trading over 2% lower at the time of writing.

Macro News: China’s imports and exports shrank in October, with outbound shipments declining 0.3% compared to a year earlier and inbound shipments falling 0.7%,reportedReuters.

China ramped up its oil imports in October, having bought 43.14 million tons of the commodity, after the government released more fuel-export quota in a bid to help revive the nation’s virus-battered economy, reported Bloomberg.

Company News:Chinese chip manufacturer Hua Hong Semiconductor Ltd has got a regulatory nod for an 18 billion yuan ($2.5 billion) IPO in Shanghai,reportedReuters.

Tesla Inc started offering additional discounts in China for consumers who buy its inventory vehicles,reportedCnEVPost.

Top Gainers and Losers: Country Garden Services Holdings Company Limited and China Resources Land Limitedwere the top losers among Hang Seng constituents, having shed over 2.5% in morning trade. Hang Lung Properties Limited and New World Development Company Limited were among the top gainers, having risen over 1% each.

Global News: U.S. futures traded mixed on Tuesday morning Asia session. The Dow Jones futures were up 0.03% while the Nasdaq futures gained 0.02%. The S&P 500 futures were trading lower by 0.07%.

Elsewhere in Asia-Pacific, Australia’s ASX 200 was up 0.32%. Japan’s Nikkei 225 traded 1.33% higher, while China’s Shanghai Composite index traded 0.62% lower. South Korea’s Kospi gained 0.8%.