Hong Kong stocks extend drop from an eight-week high as traders weigh earnings outlook, pandemic costs
- Hang Seng Index slipped for a second day from an eight-week high as Ping An Insurance reports lower earnings
- Ant Group to take orders from retail investors for Hong King IPO through Friday, soaking up liquidity
The Hang Seng Index fell 0.3 per cent to 24,708.80 at the close, on top of a 0.5 per cent setback on Tuesday. The Shanghai Composite Index rose 0.5 per cent. The yuan weakened as much as 0.2 per cent against the US dollar after the People’s Bank of China dropped a key input used to set the currency’s daily reference rate.
Stocks also retreated in other major Asia-Pacific markets, with benchmarks from Japan to Taiwan ending the day with losses. Futures on European equities weakened after prices hit the lowest level since May on Tuesday, while S&P 500 index failed to hold onto gains despite a rally in technology stocks.
A US consumer confidence report came in worse than forecast as data showed Covid-19 hospitalisations have risen at least 10 per cent in the past week.
“The pandemic continues to be the most important factor influencing the global economy and investment landscape in the next 12 months,” said Tai Hui, a strategist at JPMorgan Asset Management in Hong Kong. The latest surge should push investors to take a “more defensive position” for the time being, he added.