Hang Seng Weakens, Investors Await China PMI
Hong Kong stocks weakened in Thursday morning trading, with the Hang Seng falling and reversing the previous session's gains. Pressure came from weakening mainland Chinese stocks, while investors opted for caution ahead of next week's February PMI data release, which is expected to provide clues about the direction of economic recovery.
Global sentiment was also less than encouraging. US stock futures fell after Wall Street rallied overnight, amid market attention on IMF comments highlighting the US's still excessive current account deficit—making market participants sensitive again to fiscal stability issues and the direction of Washington's economic policy.
Domestically, the Hang Seng's decline was tempered by counterbalancing factors: Hong Kong's 2026/27 fiscal year budget projects an operating surplus ahead of expectations after three years of deficits. Hong Kong inflation data also eased in January, signaling more subdued price pressures and opening up more stable policy space.
However, the technology sector remained a major drag, and Nvidia's strong report was not enough to boost risk appetite in Asia. Consumer stocks also weakened amid concerns about a post-holiday slowdown following the peak Lunar New Year shopping season. A number of stocks that pressured the index included KE Holdings, Galaxy Entertainment, Trip.com, and Kuaishou Technology which moved down at the start of the session. (alg)
Source: Newsmaker.id
