SHANGHAI: Most of China and Hong Kong’s benchmark stock indexes fell on Tuesday, dragged by banking and energy stocks, while investors digested disappointing China August manufacturing activity data.
China stocks slip as property giants tally losses
With markets now firmly expecting the US Federal Reserve to cut interest rates in September, investors said that could give Beijing more leeway to manoeuvre its own monetary policy.
Focus will be on the US non-farm payrolls data due on Friday, after Fed Chair Jerome Powell last month endorsed an imminent start to rate cuts in a nod to worries over the labour market.
By the midday break, the Shanghai Composite index was down 0.52% at 2,796.48 points, although China’s blue-chip CSI 300 index inched 0.04% higher.
Banks were among the top losers, with an index of the sector losing 2.02%.
Four of China’s five largest lenders reported a lower second-quarter profit after responding to a government nudge to lower lending rates in order to stimulate weak loan demand amid a slowing economy and struggling property sector.
The energy sector was another major drag, dropping 2.45% in morning deals.
Chinese H-shares listed in Hong Kong fell 0.33% to 6,191.42 points, while the Hang Seng Index was down 0.37% at 17,627.05 points.
Contrasting the benchmark indexes, the smaller Shenzhen index rose 0.57%, the start-up board ChiNext Composite index was higher by 0.9% and Shanghai’s tech-focused STAR50 index was up 0.62%.
Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.43% while Japan’s Nikkei index was down 0.12%.
Source: Brecorder
