Hong Kong Markets Plunge on China PMI Concerns
Hong Kong stocks plunged 72 points, or 0.3%, to 21,934 in early trade on Wednesday, reversing modest gains from the previous session as investors reacted to China’s April PMI data. Official figures showed factory activity contracted the most in 16 months, amid growing concerns over the impact of US tariff hikes.
In contrast, a private survey showed an unexpected increase in manufacturing, albeit at the slowest pace since January. Meanwhile, growth in the services sector also weakened, with the reading falling short of expectations. Sentiment was further dampened by a decline in US futures, as traders turned cautious ahead of key US economic releases later in the day, including the March PCE price index—the Fed’s preferred inflation gauge—and the first estimate of Q1 GDP. Financials led the losses despite gains in technology, property and consumer discretionary stocks. Notable early decliners included ZTO Express (-2.7%), Pop Mart Intl (-2.0%), Meituan (-1.9%), and Haidilao Intl. (-1.5%).
Source: Trading Economics
