SHANGHAI: China stocks slipped on Tuesday, with some investors booking profits and awaiting more policy clues from Beijing, while Hong Kong shares tracked Asian shares higher ahead of inflation data from the United States.
China stocks rise as inflation rebounds
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China’s Shanghai Composite Index lost 0.5% while the blue-chip CSI300 Index was almost flat by the midday break.
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Hong Kong’s benchmark Hang Seng added 1.7%, and the Hang Seng China Enterprises Index climbed 2%.
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The Broader Asian stock market nudged higher ahead of the US inflation report, while Japanese shares fell and the yen firmed on rising expectations that the Bank of Japan may be ready to exit ultra easy-monetary policy as early as next week.
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“China’s recent economic data and policy tones are generally in line with market expectations,” Wang Ying, analyst at Nanhua Futures, said.
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“If there is no additional policy stimulus in March, the market will be more affected by overseas data.”
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Global investors’ attention is zeroed in on US inflation data due later on Tuesday. If the print is higher than expected, this could worry investors, but such concerns may be short-lived, analysts said.
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Shares in energy slumped 3%, and communications equipment lost 2.2%. However, consumer staples added 2.2% and property developers climbed 1.7%.
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Automobiles gained 0.9% as Li Yunze, head of the National Financial Regulatory Administration (NFRA), said that China is considering lowering the downpayment requirement for passenger vehicle loans.
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Shares of China Vanke Co reversed early losses, climbing 0.6% as it said its “current operation and refinancing are normal and financing channels are stable”, and said the impact of a ratings downgrade on its financing activities was “controllable”
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Moody’s said on Monday it withdrew Vanke’s ‘Baa3’ rating, which is the lowest of Moody’s investment grade ratings, and also said all of Vanke’s ratings would be on “review for downgrade”.
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In Hong Kong, tech giants jumped 3%.
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