Hong Kong stocks erase losses on fund, rating shift while Black Sesame sinks in IPO debut
- The Hang Seng Index erased earlier losses amid risk aversion across the region as US tech stocks declined overnight
The Hang Seng Index gained 0.1 per cent to 16,891.83 at the close, extending a 1.4 per cent gain on Wednesday. The Tech Index dropped 0.5 per cent and the Shanghai Composite Index was unchanged.
Japan’s Nikkei 225 fell 0.7 per cent in volatile trading, while South Korea’s Kospi declined 0.5 per cent and Australia’s S&P/ASX 200 slipped 0.2 per cent, tracking overnight losses in US stocks.
Social-media giant Tencent rallied 1.3 per cent to HK$368.20 and China Merchants Bank added 1.1 per cent to HK$31.90, while Alibaba Group Holding strengthened 0.1 per cent to HK$76.55. Limiting the advance, gold miner Zijin Mining slid 0.8 per cent to HK$14.94 after China’s central bank held off bullion purchases for a third consecutive month in July.
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Why investors can expect more market volatility after recent global stock sell-off
“China-linked assets are becoming a better option for global investors on the backdrop of the global turmoil triggered by the concern about the US recession and the crowded trade,” said Zhang Qiyao, an analyst at Industrial Securities in Shanghai. “The valuations of China assets are at depressed levels.”