Hang Seng ekes out teensy gain as protests weigh on sentiment; China indexes down on deflationary data
- Both the CSI 300 and Shanghai Composite Index close down, ending previous six days of gain
- Telecom stocks help keep Hang Seng afloat
China stocks slipped as the nation’s producer price index fell further into deflation, underscoring how the trade war with the US continues to be a drag on growth of the world’s second largest economy.
In Hong Kong, the Hang Seng Index eked out the teeniest of gains, as uncertainty about a resolution to end the three-month long protests continues to sideline investors. The Hang Seng closed at 26,683.68, higher by less than 0.1 per cent.
The jewellery and watch making sector was the top losing industry in Hong Kong, with an average drop of 1.1 per cent among the 28 stocks tracked on both the main and GEM boards.
Jewellery retailer Chow Tai Fook fell 2.2 per cent to HK$6.79. Oriental Watch finished down 2.9 per cent at HK$1.65. The drop followed news that August visitor numbers to the city were down nearly 40 per cent from a year ago, which is second biggest year-on-year decline since May 2003 when the deadly Sars epidemic pushed visitor numbers down by 70 per cent.
The Shanghai Composite Index finished down 0.1 per cent at 3,021.2, while the CSI 300, which tracks blue chips listed on the Shenzhen and Shanghai bourses, closed down 0.3 per cent at 3959.27. Both indexes ended their previous six straight sessions of gains.
Data from the National Bureau of Statistics on Tuesday morning showed that the producer price index (PPI), reflecting the prices that factories charge wholesalers for their products, fell 0.8 per cent in August. In July, the PPI fell into negative territory, at minus 0.3 per cent compared to a year ago, and down from the flat reading in June.