Hong Kong: Shares edge higher as HSBC earnings beat
HONG Kong stocks were marginally up on Tuesday (May 2) as HSBC soared after reporting a tripling in quarterly profit, while investors cautiously evaluated China activity data over the holiday weekend.
Hang Seng Index inched up 0.2 per cent, while Hang Seng China Enterprises Index dipped 0.33 per cent.
HSBC Holdings posted a pretax profit of US$12.9 billion for the quarter ended March, versus US$4.2 billion a year earlier, much higher than market expectations.
HSBC’s Hong Kong shares surged 4.5 per cent as the bank gave positive guidance and launched an up to US$2 billion buyback plan.
Meanwhile, China’s manufacturing activity unexpectedly shrank in April but mobility indicators suggest the current long Labour Day holiday likely hit a record in terms of number of travellers.
“China’s service sector continues to grow strongly while the manufacturing sector shows signs of weakening,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management.
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These mixed signals will likely keep the pressure on the government to continue its supportive fiscal and monetary policies in the second quarter.
On the geopolitical front, U.S President Joe Biden told his Philippine counterpart Ferdinand Marcos Jr that the US commitment to the defence of its ally was “ironclad,” including in the South China Sea, where Manila is under pressure from China.
Hong Kong’s economy grew 2.7 per cent in the first quarter of 2023, John Lee, the leader of the Asian financial hub, said in a surprise announcement ahead of the 0830 GMT release of official data, to snap four consecutive quarters of contraction.
HK-listed gambling stocks jumped 1.7 per cent after Macau announced April gambling revenue soared 449.9 per cent year-on-year
Big tech firms slid 0.08 per cent, while Hong Kong-listed mainland property stocks dropped 1.2 per cent on disappointing April sales data.
Mainland China markets will be closed May 2 and May 3 for the Labour Day holiday and will resume trading on May 4. REUTERS
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