Hong Kong shares dip as investors await earnings, fret over trade

17 Jul, 2019

** At the close of trade, the Hang Seng index was down 26.45 points, or 0.09%, at 28,593.17. The Hang Seng China Enterprises index fell 0.16% to 10,847.91.

** Many investors chose to sit on the sidelines, keeping trading volumes low. About 979.84 million Hang Seng index shares were traded, roughly 65.5% of the market's 30-day moving average of 1.50 billion shares a day.

** The sub-index of the Hang Seng tracking energy shares  dipped 0.8%, while the IT sector rose 0.18%, the financial sector ended 0.06% lower and the property sector dipped 0.14%.

** U.S. retail sales increased more than expected in June, reducing market expectations for an aggressive interest rate cut by the Federal Reserve at its meeting this month, though a smaller cut is still expected.

** Reviving concerns over trade negotiations, U.S. President Donald Trump said on Tuesday the United States still has a long way to go to conclude a trade deal with China, but could impose tariffs on an additional $325 billion worth of Chinese goods if it needed to do so.

** The United States did not fully comply with a World Trade Organization ruling and could face Chinese sanctions if it does not remove certain tariffs that break WTO rules, the WTO's appeals judges said in a ruling on Tuesday.

** The top gainer on the Hang Seng was Geely Automobile Holdings Ltd, which gained 3.04%, while the biggest loser was WH Group Ltd, which fell 1.89%.

** China's main Shanghai Composite index closed down 0.2% at 2,931.69 points, while the blue-chip CSI300 index  ended down 0.06%.

** Around the region, MSCI's Asia ex-Japan stock index  was weaker by 0.25%, while Japan's Nikkei index  closed down 0.31%.

** The yuan was quoted at 6.8795 per U.S. dollar at 08:25 GMT, 0.05% weaker than the previous close of 6.876.

** The top gainers among H-shares were China National Building Material Co Ltd up 2.54%, followed by Guangzhou Automobile Group Co Ltd, gaining 2.11% and China Vanke Co Ltd, up by 1.77%.

** The three biggest H-shares percentage decliners were CNOOC Ltd, which was down 1.79%, Postal Savings Bank of China Co Ltd, which fell 1.47% and CSPC Pharmaceutical Group Ltd, down by 1.46%.

Copyright Reuters, 2019

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