SHANGHAI: China stocks slipped on Tuesday, while the yuan weakened, as news of fresh US tariffs this week and China’s weak credit growth data for April kept sentiment subdued.
Trade was muted as investors awaited an inflation report from the US that could possibly offer more clues on how long the Federal Reserve will keep interest rates elevated.
Asian shares hovered around 15-month highs on Tuesday and the dollar was firm ahead of the inflation data.
China stocks slip after weak credit data
US President Joe Biden is set to announce new China tariffs as soon as this week targeting strategic sectors, including a major hike in levies on electric vehicles (EVs), sources said.
Also denting sentiment, new bank lending in China fell more than expected in April from the previous month, while broad credit growth hit a record low, raising the prospect of more action to support the economy.
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At the midday break, the Shanghai Composite index was down 0.12% at 3,144.15 points.
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China’s blue-chip CSI300 index was down 0.27%, with its financial sector sub-index lower by 0.5%, the consumer staples sector up 0.06%, the real estate index up 0.95% and the healthcare sub-index up 1.26%.
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Chinese H-shares listed in Hong Kong fell 0.06% to 6,757.82, while the Hang Seng Index was down 0.13% at 19,089.83.
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The smaller Shenzhen index was up 0.41%, the start-up board ChiNext Composite index was weaker by 0.18% and Shanghai’s tech-focused STAR50 index was down 0.18%.
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Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.02% while Japan’s Nikkei index was up 0.17%.
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