Hang Seng Drops, China Deflation Still Haunts Markets
Hong Kong stocks weakened again on Thursday as the Hang Seng remained under broad selling pressure, with most sectors closing lower. Sentiment was weighed down by a sharp dip in US futures and heavy selling in China-focused investment products, pushing investors into a more defensive stance ahead of key economic releases.
The Hang Seng hovered around 26,095, down more than 1%, reflecting persistent pressure through the session.
Caution also rose ahead of China’s December CPI and PPI data due Friday, as deflation risks continue to linger. The uncertainty has kept traders from taking aggressive positions, particularly in sectors closely tied to China’s recovery outlook.
Sector-wise, financials were among the biggest drags as investors booked profits following the recent rebound, echoing weakness in mainland peers. The Hang Seng Tech Index also slipped, last seen around 5,678.
In contrast, the property sector found support after China’s central bank signaled readiness to lower borrowing costs this year and roll out countercyclical measures to stabilize growth. On the stock front, Sands China, China Reinsurance, Meituan, Kuaishou Tech, and Techtronic Industries were among the main laggards.
Source: Newsmaker.id
