Hong Kong stocks slip from two-month high as Covid-19 cases rebound while Chinese tech firms surrender gains
- Stocks ended lower as officials took a cautious with new Covid-19 cases in Shanghai and Hong Kong
- A rally in tech stocks fizzled out even as concerns about policy backlash waned following a late Monday speculation on Didi Global probe
The Hang Seng Index fell 0.6 per cent to 21,531.67 at the close of Tuesday trading. The Tech Index was little changed, surrendering an earlier 1.5 per cent amid speculation on sector crackdown. The Shanghai Composite Index rose 0.2 per cent.
Anta Sports lost 1.5 per cent to HK$90.90 and water-bottling group Nongfu Spring slumped 2.4 per cent to HK$42.84, while Sunny Optical slid 5.1 per cent to HK$120.10. Gains in Alibaba Group and JD.com overshadowed volatile swings in other tech peers.
“The bottom [in Chinese stocks] is basically clear and there is no need for pessimism in strategy,” analysts at Guosheng Securities wrote in a report. Still, the rebound might not happen “in a hurry.”
Traders remained wary amid media speculation late Monday that China was finishing a cybersecurity probe into ride-hailing group Didi Global, which helped fan an overnight rally in US-listed Chinese technology stocks.
Major equity markets in Asia-Pacific were also mixed in early trading. The benchmark in Australia slipped 1.6 per cent after the central bank raised its cash rate by 50 basis points, the biggest hike in 22 years. Gauges in Japan advanced 0.4 per cent, while South Korea’s market slipped by 1.7 per cent.