China stocks ease after 5-day rally on downbeat data; Hong Kong skids

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* SSEC -0.5%, CSI300 -0.4%, HSI -0.1%

* China’s factory prices post steepest fall in 3 years

* U.S. Treasury Secretary sees tariffs being imposed Dec. 15 if no China trade deal

SHANGHAI, Oct 15 (Reuters) – China stocks retreated on Tuesday after five straight sessions of gains, as the latest factory gate data added to China’s economic woes and a deal to end the trade war with the United States remained elusive.

** The CSI300 index fell 0.4%, to 3,936.46, by the end of the morning session, while the Shanghai Composite Index lost 0.5%, to 2,991.90.

** China’s factory gate prices declined at the fastest pace in more than three years in September, reinforcing the case for Beijing to unveil further stimulus as manufacturing cools on weak demand and U.S. trade pressures.

** That came after data showed a slide in China’s exports picked up pace in September while imports contracted for a fifth straight month.

** Doubts remained as to if China and the United States could come to a durable deal to end their over-one-year-long trade war.

** U.S. Treasury Secretary Steven Mnuchin said on Monday that an additional round of tariffs on Chinese imports will likely be imposed if a trade deal with China has not been reached by then, but added that he expected the agreement to go through.

** In Hong Kong, stocks slipped but losses were limited after the central bank cut banks’ capital buffer to support economy.

** The Hang Seng index dropped 0.1%, to 26,506.18, while the Hong Kong China Enterprises Index lost 0.1%, to 10,498.00.

** The Hong Kong Monetary Authority (HKMA) has cut the amount of cash that banks must keep as reserves, releasing an extra HK$200 billion-HK$300 billion ($25.50-$38.24 billion) into the broader economy which has been hit by months-long protests and the Sino-U.S. trade war.

** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.08%, while Japan’s Nikkei index was up 1.88%.

** The yuan was quoted at 7.0738 per U.S. dollar, 0.1% weaker than the previous close of 7.067.

** So far this year, the Shanghai stock index is up 20.61%, while China’s H-share index is up 3.8%. Shanghai stocks have risen 3.53% this month.

** As of 04:15 GMT, China’s A-shares were trading at a premium of 29.97% over the Hong Kong-listed H-shares.

Reporting by Luoyan Liu and John Ruwitch; Editing by
Subhranshu Sahu

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