Hong Kong stocks fall to 12-week low as investors wait on tech earnings, fret over China recovery
- Investors are looking to tech giants’ earnings reports for positive signs after recent economic data released by China proved underwhelming
- Threat of US default over debt-ceiling fight looms over markets
Hong Kong stocks fell to a 12-week low as investors wait for stronger signals of economic recovery from China and more quarterly earnings report cards from tech giants.
The Hang Seng Index slipped 2.1 per cent to 19,560.57 at the close of trading on Wednesday, its lowest point since March 21. The Tech Index sank 2.2 per cent and the Shanghai Composite Index fell 0.4 per cent.
Property developer Longfor plunged 7.1 per cent to HK$18.62, while peer Country Garden dropped 5.3 per cent to HK$1.62. Drug makers Wuxi Biologics fell 4 per cent to HK$44.85 while Hansoh Pharmaceuticals lost 4.3 per cent to HK$12.76.
Alibaba fell 0.4 per cent to HK$85.45, while Tencent gained 0.6 per cent to HK$342.80. Tencent is expected to release its report card late on Wednesday, while Alibaba’s earnings report will be out on Thursday.
The Hong Kong stock market is currently in a fluctuating pattern, according to Kenny Ng Lai-yin, a strategist at Everbright Securities International in Hong Kong. The Hang Seng Index is expected to move between 19,500 and 20,200 in the short term while “choosing a breakthrough direction”.
