Shanghai extends losses for fifth day while Hong Kong finishes ahead, as traders battle nerves amid trade tensions
- Markets partied at the opening over news the US Fed is open to rate cut if needed
- But then, trade gloominess set back in
The Shanghai benchmark extended losses for the fifth trading day, while Hong Kong posted gains, as traders felt torn between positive news that the US Federal Reserve is open to a rate cut and gloom from ongoing trade uncertainties.
The Shanghai Composite closed down 0.03 per cent to 2,861.42 on Wednesday, falling at the end after opening up 0.91 per cent. The CSI 300 benchmark of large caps on Shanghai and Shenzhen stock markets continued Tuesday’s losses to end down 0.038 per cent to 3,597.11.
In Hong Kong, the Hang Seng closed up 0.5 per cent to 26,895.44, after five straight trading days of falls. It did, however, lose momentum from a 1.28 per cent gain at open, which took it briefly above the psychologically important threshold of 27,000.
Markets had initially reacted to news overnight from US Federal Reserve chief Jerome Powell that the central bank is “closely monitoring” US-China tensions, and officials might ease policy if the US economy is threatened. He said the central bank was being “patient” in any rate decision and would respond to risks as appropriate.
Meanwhile, Chinese president Xi Jinping said the country’s economy was stable, healthy and well placed to meet challenges, according to a transcript published by state-run Xinhua.