HK shares end lower as China's tepid factory output weighs
BEIJING, June 16 (Reuters) – Hong Kong shares ended lower on Wednesday, as investors refrained from placing big bets ahead of U.S. Federal Reserve meeting outcome and after data showed that disruptions caused by COVID-19 outbreaks had eased growth in China’s factory output.
** At the close of trade, the Hang Seng index was down 201.69 points or 0.7% at 28,436.84. The Hang Seng China Enterprises index fell 0.99% to 10,562.97.
** The sub-index of the Hang Seng, tracking the material sector , slipped 5.4% and the IT sector dropped 1.85%, while the property sector dipped 0.43%.
** Recent data pointed to a quick recovery in overseas economies, raising domestic worries over tightening of liquidity, Hu Yunlong, a Beijing-based fund manager, said.
** Commodities-related stocks faced pressure for a correction, while other sectors with lofty valuations were also under pressure, leading to a retreat across the board, Hu said. ** The retreat from riskier assets followed data that showed growth in China’s factory output slowed for a third straight month in May, likely weighed down by disruptions caused by COVID-19 outbreaks in the country’s southern export powerhouse of Guangdong. Retail sales and investment growth also came in below market expectations.
** “Investors are nervous ahead of the U.S. Fed meeting as well as Fed’s hawkishness would push the dollar higher, pressuring the yuan,” Yan Kaiwen, an analyst with China Fortune Securities, said.
** The top gainer on the Hang Seng was HSBC Holdings PLC , which gained 1.58%, while the biggest loser was BYD Co Ltd, which fell 8.2%.
** China’s main Shanghai Composite index closed 1.07% lower at 3,518.33 points, while the blue-chip CSI300 index ended down 1.67%, dented by material and healthcare shares.
** Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.46%, while Japan’s Nikkei index closed down 0.51%.
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