Hong Kong stocks fall after 3 days of gains as traders assess earnings, stimulus prospects
Sentiment has cooled and cautious mood now dominates trading after the previous rally, Shengang Securities analyst says
The Hang Seng Index closed 0.5 per cent lower at 19,601.11 after rising 1.4 per cent over the past three days. The Hang Seng Tech Index dropped 1.2 per cent.
China’s equity benchmarks bucked the downtrend. The CSI 300 Index and the Shanghai Composite Index both finished 0.1 per cent higher.
Chow Tai Fook Jewellery Group fell before its earnings next week that is likely to show a smaller profit. Longfor Group Holdings paced the declines among Chinese developers.
Investors are looking for fresh catalysts to rejuvenate stocks after fiscal measures from a Chinese legislative meeting underwhelmed and the threat of higher US tariffs loomed. The Hang Seng Index has dropped about 15 per cent from this year’s high set in October, giving back some of the gains spurred by monetary easing and Beijing’s broad measures to prop up the property market.
Some 35 companies on the Hang Seng Index have disclosed quarterly results so far, posting an average 0.1 per cent profit increase from a year earlier, according to Bloomberg data. In the previous quarter, profit growth stood at 7.3 per cent.
