The Hang Seng Index weakened 0.7 per cent to 16,606.26 at local noon trading break, reversing an earlier gain of as much as 0.7 per cent. The Tech Index declined 1.3 per cent to near a one-week low. Financial markets in mainland China are closed for a public holiday.
WuXi Biologics slumped 4.6 per cent to HK$13.40 while its affiliate WuXi AppTech tumbled 5.8 per cent to HK$35.05. E-commerce platform operator Alibaba Group slipped 0.9 per cent to HK$69.75, peer JD.com fell 2.9 per cent to HK$101.40. Longfor declined 4.9 per cent to HK$9.95, leading losses among mainland Chinese developers.
“If we continue to see inflation moving sideways, then that would make me question whether we need to do those rate cuts at all,” said Kashkari, who last month projected two rate cuts in 2024. “There’s a lot of momentum in the economy right now.”
Buying binge by China’s ‘national team’ bloats CSI 300 ETFs
Buying binge by China’s ‘national team’ bloats CSI 300 ETFs
There is a 54.3 per cent chance of a rate cut at the Fed’s June meeting, compared with 61.8 per cent one day earlier, according to data compiled by CME Group based on Fed fund futures. US consumer prices rose at an annual pace of 3.2 per cent in February, quickening from 3.1 per cent in January.
“Expectations of Fed rate cuts have been fluctuating,” analysts at China Merchants Bank said in a note, dampening a recent recovery in risk appetite. Hong Kong’s stock market is likely to see more near-term volatility, they said.
The Hang Seng index is still 0.4 per cent higher from last Friday, adding to a 0.3 per cent gain in the preceding week. Due to public holidays, some HK$93 billion worth of stocks have changed hands so far this week, versus HK$113.5 billion last week, according to Bloomberg data.
Other key Asian markets fell. The Nikkei 225 Index in Japan lost 1.9 per cent while the Kospi Index in South Korea declined 0.9 per cent and the S&P/ASX 200 in Australia declined 0.6 per cent.