Hong Kong stocks retreat as China data raises doubts about strength of economic recovery

Hong Kong stocks retreat as China data raises doubts about strength of economic recovery

18 Mar Hong Kong stocks retreat as China data raises doubts about strength of economic recovery

Posted at 02:47h in Asia by

Hong Kong stocks declined for a fourth straight session on Monday after a batch of government data showed China’s economic recovery was still tentative, as retail sales and employment data both lagged street estimates, while sentiment was also cautious ahead of the US Federal Reserve meeting later this week.

The Hang Seng Index lost 0.2 per cent to 16,683.86 as of 10.05am local time. The Tech Index declined 0.1 per cent while the Shanghai Composite Index added 0.3 per cent.

E-commerce giant Alibaba lost 0.2 per cent to HK$71.50, food delivery company Meituan declined 0.8 per cent to HK$88.80 and technology firm NetEase retreated 2.8 per cent to HK$165.40. Sportswear maker Li Ning lost 3.5 per cent to HK$19.98 and Longfor Group weakened 2.5 per cent to HK$10.28, leading losses among mainland developers.

A batch of economic data released on Monday broadly disappointed investors tracking the recovery in the world’s second largest economy. Retail sales grew 5.5 per cent during the January to February period and jobless rate rose to 5.3 per cent, both missing estimates. Industrial production, meanwhile, jumped 7 per cent compared with same period, according to National Bureau of Statistics.

Investors have pared back their expectations for a US interest rate cut in the May ahead of the Federal Reserve decision. Data from CME Group shows markets are now pricing in a 94 per cent chance of steady rates, compared with 70 per cent a month ago.

Asian stocks were broadly higher. Japan’s Nikkei 225 jumped 2 per cent on bets that the central bank will end its negative interest rate policy. South Korea’s Kospi added 0.6 per cent and Australia’s S&P/ASX 200 lost 0.1 per cent.

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