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 highly anticipated US inflation 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.
At the close, the Shanghai Composite index was down 0.07% at 3,145.77.
The blue-chip CSI300 index was down 0.21%, with its financial sector sub-index lower by 0.33%, the consumer staples sector down 0.13%, the real estate index up 1.05% and the healthcare sub-index up 1.13%.
The smaller Shenzhen index ended up 0.35% and the start-up board ChiNext Composite index was weaker by 0.256%.
At the close, the Hang Seng index was down 41.35 points, or 0.22%, at 19,073.71. The Hang Seng China Enterprises index fell 0.3% to 6,741.41.
The sub-index of the Hang Seng tracking energy shares dipped 2.1%, while the IT sector rose 0.98%, the financial sector ended 0.83% lower and the property sector dipped 0.82%.
Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.16%, while Japan’s Nikkei index closed up 0.46%.
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