Hong Kong stocks erase losses as Chinese manufacturing data fuels optimism amid Ukraine crisis

Name: Russia and Ukraine officials conclude first round of talks in Belarus
Uploaded: 2022-03-01T02:52:31.000Z
Duration: 3 min 13 s
Description: Russia and Ukraine officials conclude first round of talks in Belarus

The Hang Seng Index erased earlier losses as traders focused on China’s PMI report and potential for more policy support later this week

Fallout from sanctions on Russia widened in financial markets as index compilers review the content of sanctioned assets in their indices

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Hong Kong may subject its residents to a large-scale lockdown. Photo: EPA-EFE

Zhang Shidong

Published: 10:52am, 1 Mar 2022Updated: 1:14pm, 9 Mar 2022

Hong Kong stocks rebounded from a two-year low after a government report showed China’s manufacturing expanded at a faster-than-estimated pace last month. Traders overcame selling pressure amid growing sanctions on Russia.

The Hang Seng Index advanced 0.2 per cent to 22,761.71 at the close, erasing an intraday loss of as much as 0.5 per cent. Market volatility stayed around a four-month high. The Shanghai Composite Index rose 0.8 per.

WuXi Biologics, Xinyi Glass and AAC Technologies led the market recovery, rising more than 4 per cent. Alibaba Group Holding slipped 0.4 per cent to a record low as more analysts trimmed their price targets for the Chinese e-commerce group.

China’s official PMI manufacturing index rose to 50.2 in February from 50.1 in January despite disruption in preparation for the Winter Olympics, the statistics bureau said on Tuesday. That beat the market consensus of 49.8. Reading above 50 indicates expansion.

“We expect more supportive policies in the 2022 government work report,” said Bruce Pang, head of macro and strategy research at China Renaissance Securities in Hong Kong. “Priorities will likely be securing investment, expanding domestic demand, and promoting steady growth in foreign trade and foreign investment.”

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Russia and Ukraine officials conclude first round of talks in Belarus

China’s annual legislative and consultative conference, known as the “two sessions,” will kick off later this week in Beijing. Investment banks including UBS expect Premier Li Keqiang to place stabilising growth on top of the agenda in his work report to delegates.