Hong Kong stocks retreated as investors waited on the sidelines ahead of the US inflation data, which could influence the Federal Reserve’s rate decision.
The Hang Seng Index fell 0.7 percent to 19,733.37 as of 10.17am local time, following the 2.1 per cent pullback on Tuesday. The Tech Index retreated 0.6 percent, while the Shanghai Composite lost 0.7 per cent. A gauge tracking US-listed Chinese stocks tumbled 2.3 per cent overnight in New York.
Meituan slipped 1.7 percent to HK$127.90, while JD.com lost 1.2 percent to HK$134.90. Property developers China Resource Land dropped 1.1 percent to HK$35.30, Longfor Group slipped 1.5 percent to HK$21.20 and Country Garden retreated 0.5 percent to HK$1.99. China’s biggest electric-vehicle maker BYD lost 0.5 percent to HK$238.80.
Bank of China lost 2 percent to HK$3.30, while ICBC dropped 1.5 percent to HK$4.54, leading a retreat among bank stocks as traders book profit after a strong rally.
What moved the Hang Seng Index?
The US consumer price data due later on Wednesday is expected to rise 5 percent year on year in April, according to a consensus of analysts compiled by Bloomberg. The market has priced in a pause in the Fed’s rate hike in June. The CME’s FedWatch tool shows there is a 77.7 percent chance of a rate hike next month, compared with 84.5 percent two days ago.
Elsewhere, two stocks debuted on Wednesday. Semiconductor Manufacturing El jumped 8.3 percent to 6.16 yuan in Shenzhen, while Zhejiang Wanfeng Chemical surged 37 percent to 19.98 yuan in Shanghai.
Major Asian markets declined on Wednesday. The S&P/ASX 200 in Australia fell 0.2 per cent and the Kospi in South Korea declined 0.1 per cent. The Nikkei 225 in Japan retreated 0.4 per cent.
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