Saturday, November 16, 2024

Hong Kong stocks set for worst month since February as slump in China’s manufacturing sector expands, with Fed offering no early relief plan

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Hong Kong KK China’s manufacturing sector is on track for its worst performance in 11 months since it contracted in January, underscoring the inadequacy of stimulus measures to spur economic recovery. The Fed is expected to keep interest rates on hold this week, providing no immediate relief to the city’s real estate market.

The Hang Seng Index fell 1.5% to 15,462.74 as of 3:08 p.m. local time, bringing the monthly decline to 9.3% and the worst since a 9.4% decline in February last year. . The tech index fell 3.2%, and the Shanghai Composite Index fell 1.5%.

This month’s decline marks the worst start to the year for the local market since January 2016, when the Hang Seng Index fell 10%.

Alibaba Group fell 2.5% to HK$69.35, e-commerce peer JD.com fell 3.5% to HK$86.45 and Meituan fell 4.2% to HK$62.65. Wuxi Biologics fell 8.7% to HK$20.45, while its affiliate Wuxi AppTec fell 4% to HK$54.05. HSBC fell 0.3% to HK$61.15. He was fined by the UK financial watchdog.
Chinese officials PMI Manufacturing Index It was 49.2 in January and 49 in December, the National Statistics Office said on Wednesday, the first time it has fallen below the 50-point threshold since September. The figure was also below the consensus estimate of 49.3 among economists surveyed by Bloomberg.

“Weakness in manufacturing cannot be explained by seasonality. Policy support is still needed to boost effective demand,” said Bruce Pang, chief economist at Jones Lang LaSalle in Hong Kong. He added that weak consumer and producer prices could support a rate cut in China.

Citigroup and HSBC lower Hang Seng Index targets due to profits, raising questions about China policy

Beijing’s piecemeal support package and new geopolitical risks ahead of the US presidential election later this year, combined with this week’s shocking liquidation judgment against China Evergrande Group, are clouding China’s recovery prospects. analysts point out.

Meanwhile, Sunny Optical, which makes camera lenses for iPhones, plunged 13% to HK$46.90. The company said its net profit could fall by up to 55% in 2023 due to lower product prices and narrower profit margins due to weak demand and increased competition.

Tencent fell 1.6% to HK$269.20 after founder Pony Ma Fateng told its fintech unit to scale back. Advantages of digital payments and transfer market share Go to the bank. The company’s stock price has fallen more than 40% over the past three years, wiping out $340 billion in market capitalization.

Hong Kong real estate prices fall to lowest since January 2017 due to high interest rates

Markets fell as traders said they expected rates to remain unchanged at the first policy meeting of 2024 later today, based on 98% odds priced into federal funds futures. The decision does not provide immediate relief to Hong Kong’s real estate market, which has been suffering from interest rate hikes since March 2022.

Sun Hung Kai Properties fell 1.8% to HK$72.90, New World Development fell 4% to HK$9.58 and Henderson Land fell 3.6% to HK$20.25.

Other major Asian markets were mixed. Japan’s Nikkei Stock Average rose 0.6%, Australia’s S&P/ASX 200 index rose 1.1%, while South Korea’s Kospi index fell 0.1%.



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