Hang Seng Index snaps longest rising stretch in 14 months; Cathay Pacific shares erase gain spurred by rescue plan
- The Hang Seng Index dropped less than 0.1 per cent, ending a streak of gains for seven straight days
- In China, factory-gate prices fell by a bigger-than-expected 3.7 per cent in May
Hong Kong’s Hang Seng Index dropped slightly, as traders weighed whether equities had risen too quickly after a seven-day rally for the longest winning steak in 14 months.
The city’s stock benchmark slipped less than 0.1 per cent, or 7.49 points, to 25,049.73 at the close on Wednesday after changing directions about 10 times. It had advanced 9.1 per cent over the past seven days.
Cathay Pacific Airways gave up an intraday gain of as much as 19 per cent sparked by a HK$39 billion (US$5.03 billion) bailout package. Hong Kong Exchanges and Clearing (HKEX) rose to a record before Chinese gaming giant NetEase starts trading in the city on Thursday.
Mainland’s Shanghai Composite Index fell 0.4 per cent after official data showed that the decline in China’s factory-gate prices deepened in May.
That followed an overnight pullback in US equities, as concerns mounted that the historical rally outstripped the economic outlook. Caution also dominated trading in other major markets in Asia, with Japan’s Topix Index closing lower and Australia’s benchmark almost little changed.