Hong Kong stocks retreat most in three weeks as Alibaba, HSBC tumble, BTS jumps in Seoul debut
- Forty-eight of 50 Hang Seng Index members dropped amid report on US proposal to blacklist Alibaba’s affiliate Ant Group
- In China, Yihai Kerry Arawana and Shanghai Holystar Information Technology rallied on their debut; Big Hit Entertainment, the agency managing BTS band, surged in Seoul debut
The Hang Seng Index slid 2.1 per cent to 24,158.54 at the close on Thursday, the steepest decline since September 21. The Shanghai Composite Index dropped for a second day, losing 0.2 per cent to 3,332.18.
Prices at factory gates declined 2.1 per cent in September, widening from 2 per cent a month earlier, China’s statistics bureau said on Thursday morning. That suggests local manufacturers are struggling to regain pricing power, even as the economy begins to recover after the coronavirus pandemic. Data on industrial inflation tempered the better-than-expected credit growth numbers released by the central bank and a stronger external trade numbers earlier this week.
The bureau is also expected to release the data on third-quarter economic growth on Monday. China’s growth probably accelerated to 5.4 per cent over the past three months from 3.2 per cent for the previous quarter, according to Bloomberg data.
Markets across the Asia-Pacific region also retreated after US stocks slipped in overnight trading amid disappointing earnings reports from Wells Fargo and Bank of America. Meanwhile, Treasury Secretary Steven Mnuchin downplayed the chances of striking a stimulus deal before the November 3 presidential election.
“The market seems to have got a little ahead of itself in pricing in a pro fiscal, political landscape [after the presidential election],” said Stephen Innes, a strategist for global markets at Axi. “Asian markets could suffer the hangover effect from the US market.”
