Hong Kong stocks retreat from 2-month high as Baidu slumps on growth concerns
The market is likely to trade sideways as there are no catalysts to support a rally, Dongxing Securities analyst Lin Yang says
The Hang Seng Index closed 1.2 per cent lower at 23,544.31. The Hang Seng Tech Index declined 1.7 per cent. On the mainland, the CSI 300 Index dropped 0.1 per cent and the Shanghai Composite Index slipped 0.2 per cent.
“The market is likely to trade sideways, and fundamentally speaking it’s not supportive for a new bout of bull run,” said Lin Yang, an analyst at Dongxing Securities in Shanghai. “The fundamentals, such as economic strength and earnings, are still cloudy and the concerns in the market are still there.”
Hong Kong stocks’ rebound from tariff-inflicted sell-offs may face some challenges, as investors shift their focus to the economy and corporate earnings. China’s key economic data was mixed in April, with retail sales stagnating and industrial production picking up, while the decline in housing prices continued. Alibaba, the biggest weighting on the Hang Seng Index, posted quarterly revenue and profits that both fell short of projections last week.