Hong Kong stocks wavered after inflation in mainland China cooled more than expected last month, indicating the economic recovery remains sluggish. JD.com and SMIC advanced before their results.
The Hang Seng Index lost 0.1 percent to 19,744.22 as of 10.35am local time, erasing gains of as much as 0.5 per cent earlier. The Tech Index added 0.7 per cent, while the Shanghai Composite Index was little changed.
NetEase retreated 1.4 percent to HK$136.60, Meituan declined 0.7 percent to HK$128.10 and Tencent Holdings lost 0.1 percent to HK$329.20. Developer Longfor Group slid 2 percent to HK$20.30 and Country Garden dropped 1.5 percent to HK$1.94. China’s big three oil majors – PetroChina, Sinopec and CNOOC – dropped by 0.5 to 2.9 percent.
What moved the Hang Seng Index?
Limiting losses, Chinese chip giants Semiconductor Manufacturing International Corporation, Hua Hong Semiconductors and e-commerce major JD.com rose by 1.5 to 3.6 percent before the release of their first-quarter report cards later today. Li Auto surged over 16% after the release of its first-quarter report.
Data from the National Bureau of Statistics on Thursday showed consumer prices in China rose by 0.1 percent in April from a year earlier, the least in more than two years, in a sign that China’s post-Covid recovery remains sluggish.
Separately, producer prices fell 3.6 percent following a 2.5 percent drop in March, the statistics bureau said, deepening a deflationary trend.
Meanwhile, inflation in the US also cooled, with the annual increase in consumer prices slowing to 4.9 percent in April, bolstering hopes the Federal Reserve will start cutting rates this year to shore up the economy. The market has priced in the chances of a rate at nearly 80 percent, according to CME’s FedWatch tool.
Two stocks debuted on Thursday. Yonyou Auto Information Technology tumbled 14 percent to 29.15 yuan in Shanghai, while Plus Group Holdings lost 1.9 percent to HK$10.40 in Hong Kong.
Major Asian markets were mixed. The Nikkei 225 in Japan lost 0.2 percent and the S&P/ASX 200 in Australia lost 0.3 percent, while the Kospi in South Korea added 0.5 percent.
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