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Hong Kong stocks chalk up weekly loss as rate-hike fears outweigh positive China economic data
- The Hang Seng Index trimmed a larger loss early in the session, after key August economic data from China exceeded economists’ projections
- Sands China and other Macau gaming operators rallied on expectation that they will retain their gambling concessions despite a new bidder
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Hong Kong stocks dropped, sending the benchmark to a third straight weekly loss as traders weighed positive August economic data from China versus the prospect of policy tightening by the Federal Reserve.
The Hang Seng Index fell 0.9 per cent to 18,761.69 at the close on Friday, trimming a loss of as much as 1.3 per cent earlier in the session, after China economic data for August exceeded forecasts. The 73-member gauge retreated 3.1 per cent for the five-day period.
The Hang Seng Tech Index lost 2.7 per cent, while the Shanghai Composite Index slipped 2.3 per cent, the biggest decline in almost four months. China’s onshore yuan weakened to 7.0226 against the US dollar, breaching the 7 yuan level against the dollar for the first time since 2020.
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The weakness in local stocks mirrored the soured mood on other regional and US markets, as traders are braced for the US Federal Reserve to raise borrowing costs by at least 75 basis points next week on the back of a hotter-than-expected inflation report.
Topping the list of decliners on the Hang Seng Index, property developer Country Garden Holdings sank 7.6 per cent to HK$2.42, and coal producer China Shenhua Group slid 4.5 per cent to HK$24.55. Hong Kong Exchanges and Clearing fell 2.6 per cent to HK$295.60, and Alibaba Group Holding shed 1.5 per cent to HK$86.80.
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