Hong Kong: Stocks end lower as geopolitical tensions weigh, US CPI in focus
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
HONG Kong stocks finished lower on Wednesday (Apr 12) as heightened Sino-US tensions dented sentiment, while investors are closely watching US inflation print, due later in the day. China shares were mixed.
China’s blue-chip CSI300 Index closed down 0.1 per cent, while the Shanghai Composite Index gained 0.4 per cent.
The Hong Kong benchmark Hang Seng Index was down 0.9 per cent, and the China Enterprises Index declined 1.2 per cent.
Taiwan President Tsai Ing-wen said on Wednesday that her recent overseas trip, which included the US, showed the world Taiwan’s determination to defend freedom and democracy.
Tsai’s statements came after state media reported that the Chinese navy continued with “actual combat training” around Taiwan on Tuesday.
Investors continue to weigh geopolitical tensions when making decisions. Warren Buffett called geopolical tensions “a consideration” in Berkshire Hathaway’s decision to sell most of its stake in Taiwanese chipmaker TSMC, according to Nikkei.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
Meanwhile, investors are closely watching the US consumer price index (CPI) as it will likely influence the Federal Reserve’s monetary policy path.
Tech stocks traded in Hong Kong slumped 1.9 per cent, with Tencent Holdings and Alibaba Group Holding down 5.2 per cent and 3.3 per cent, respectively.
Chinese stocks were mixed, even though better-than-expected social financing data underscores strong credit expansion in March.
“Further improvement of credit demand and the still accommodative overall monetary policy stance contributed to the fast credit growth,” Goldman Sachs said in a note.
Artificial intelligence (AI) related themes were still fuelling the market, even as investors lost appetite for consumer staples and tourism sectors.
AI shares and the CSI Computer Index both jumped 2.9 per cent, with Inspur Electronic Information Industry rising as much as 10 per cent.
Telecom shares soared 4.0 per cent, with China United Network Communications and China Telecom up 7.6 per cent and 6.0 per cent, respectively. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
