Hong Kong stocks slip amid fading rate cut bets, caution ahead of Fed, inflation data
The Hang Seng Index slid 1.5 per cent to 18,085.15 as of 10am local time. The Hang Seng Tech Index dropped 1.3 per cent and the Shanghai Composite Index retreated 0.9 per cent.
Both markets were playing catch-up with the global markets sell-off following last Friday’s robust US non-farm payroll report, as they reopened after Monday’s public holiday. The probability of a cut in the interest-rate by the Fed in September has now dropped to 45 per cent, according to CME data.
Sentiment was also cautious in a week that will see the release of both China and US inflation data as they will offer more clarity about monetary policy in the world’s two largest economies. Both reports are due Wednesday and hours after the US report, the Fed’s interest rate decision will follow.
Chinese gold producer Zijin Mining Group tumbled 4.8 per cent to HK$16.66 following a rout in the bullion prices. Among other leading decliners, China Resources Beer lost 6.7 per cent to HK$29.20 and electric-vehicle maker Li Auto slid 4.5 per cent to HK$74.55.
Other major Asian markets were mixed. Japan’s Nikkei 225 climbed 0.3 per cent and South Korea’s Kospi rose 0.6 per cent, while Australia’s S&P/ASX 200 lost 1.4 per cent.
